Let me raise another hypothesis. The real value that movie theaters have today is their ability to shape taste and choose winners. Of course, they don't and can't control tastes completely but they can strongly shape them by determining what's put in front of people.

Some mainstream movies are good, some are bad. Some alternative movies are good, some are bad. But for overall movies production and profiting process, the movies that make the most money have spin-offs, have predictable sequels, have merchandise, can be sold to middle-class third world people who aspire to American or European lifestyles and so-forth. These make the most profits.

So movie theaters help the industry by putting more movies with this extra profit potential in front of people. How exactly they get compensated for this is I couldn't answer in detail but ownership of the largest chains is very incestuous.

But this model requires a situation people first to go to a movie and later to decide which movie.

So this would give the result. It's bad to movie goers power to decide to see. It's bad even if that means more movie theater revenue.