That is a decent price, but even $5 is really on the high end when you are talking about sitting in a $5 chair in a big concrete box for 2 hours watching a screen only like 10 times bigger than what many people have a home nowadays. Even without factoring in the profits from snacks and candy a business model should be maintainable on like $1 a viewing.
The #1 thing making that business model not "maintainable on like $1 a viewing" is the licensing fees the theaters have to pay to show the films. It depends on the particular business deals but usually 90%+ of the ticket value goes straight to the movie studio. Theaters make almost all of their money on popcorn/soda/candy. Yes it sucks, but that's the reality.
I think $1 for a movie ticket to a new film is pretty unrealistic though, when you consider how expensive a film is to make, plus the operational costs of the theater.