I can believe it. When was the last time you went to a theater? Annoying patrons, incredible volume levels, unreasonable prices for food, and ~20 minutes of ads and previews before the show.
Now that I'm pushing toward the middle of life with small children, going to the movie theater is more of a chore than anything else. Very few theaters around my location have anything starting after 5:15pm but before 7:30pm. I'd like to take the wife and kid to go see a movie, but I need to either take off from work and skip dinner, or go to the later showing and have the kid out late. This is just one example, but I know I'm not the only parent that is concerned about their children getting dinner and going to bed on time.
The second issue is cost. My understanding is that the theaters make very little per showing from ticket sales, but make it up with popcorn and sodas. If I were to get tickets, popcorn/snacks, and sodas I would be in about $60 for one evening's entertainment for the family. If we leave the kid with a sitter that can get even more expensive.
Volume levels, annoying patrons, and expensive prices are all what is keeping me from the theater. I don't have an extra $60+ in my budget to spend each weekend. If they can get that down to $20 that is something I would do on a regular basis. Until then it just doesn't make sense.
On the other hand, we are fortunate enough to live where there is still a double-feature drive-in movie theater. They are generally smart about their showings and will place a kid-friendly movie as the first showing and put an adult one second. This works out very well when the kid is asleep in time for the second showing, or we can go home if the weather takes a turn for the worse. $5 per person and I can bring my own food (or buy their reasonably-priced snacks, usually about half what the other theater charges).
This is really only the tip of the iceberg for me, but they have a long way to go before they get my movie theater dollars again.