The industry is headed more and more toward straight to DVD.
It gets harder and harder to fill theaters.
It's down to 9.7% of the population or 27 million per week. That's a huge drop from the days when 80 million attended, but considering that a big hit TV show will draw a viewership of 20 million people who don't even have to leave their house, that's hardly disastrous. DVD and video games all have cut into movies but they're still standing.
I think the movies will survive, but release times for them to DVD will shrink, as will pay-per-view windows. When home theaters become even more economical I think they will lose almost all of their older audience. But teens still need a place to go on dates; theaters are still packed on weekends (Sunday's the biggest day--young kids, parents with kids).