In its most simple and irreducible form, the challenge is this: big-screen movies need to offer an experience so preferable to home viewing (or video games, or TV, or other uses of leisure time) that customers will pay time and ticket prices for it.
That's becoming harder and harder, because all sides of the equation have been getting hit. On the pricing side, it goes without saying that higher prices place a greater burden on entertainment value. But on the entertainment side, we now have a) alternatives (Netflix, video games, etc.) that are increasingly attractive, inexpensive, and readily available, and b) movie offerings that have, at best, held steady in their general entertainment value.
Interestingly, the theater-going experience itself has been improving over the past few decades. But at the heart of it all, customers aren't there for the window dressing; they're there for the content. A juicy piece of IP, such as Harry Potter, would drive people to a run-down shithole of a theater if they had to go -- but conversely, a shitty product wouldn't attract people to the nicest theater ever built. So, while we can all applaud the efforts of theater chains to improve their general offerings -- atmosphere, food, dining, etc. -- we shouldn't believe that such improvements are wholly sufficient, or ever could be. (At worst, if the cost of such atmosphere, ambience, furnishings, services, etc., eventually leaks into the ticket prices, then theaters are making the game even harder for themselves).
In summation, I place the burden for the future of the big-screen movie business primarily on the shoulders of the movie studios. Not the exhibitors. Studios can't keep rehashing the same, warmed-over crap each year and expect anything more than a dice roll from the outcome. They need to place bigger bets with breakthrough IP. They need to wean themselves from the largely mistaken belief that uber-expensive movie stars drive box office attendance (overseas, they do; domestically, there's almost zero correlation). And they need to go all-in on the bets they do place. No more licensing, buying, or developing 100 properties to produce 2. Borrow a page from the Apple product philosophy, and launch only the titles you are dead serious about supporting. Fewer, but better.
Finally, as a whole, the industry needs to stop being so stridently anti-consumer. Enough with the war on piracy, the DRMs, the 50 super-uber-ZOMG-uncensored-platinum-edition releases of every title on DVD and Blu-ray, and so forth. Studios, you are product companies. Focus your time, your attention, your budgets, and your people on your products. And make every product count.