Exactly. I bought a fairly decent set of speakers, a projector, and a DVD player for a total of around £450 in 2003. Back then, a ticket at my local cinema cost £4.50 (it's gone up), so roughly the same as going to the cinema 100 times. Popcorn was another £4 or so (drinks another £2-3), so that brought it down to about 50 trips - one a week for a year. I split the cost of the projector with my housemates back then and we'd have friends bring a DVD and food / beer around. By the end of the year, it had more or less paid for itself. One of my housemates bought the other shares in the projector when he moved and I bought a new one and have replaced the bulb once, so I've spent a total of about £500 (plus electricity) over a period of 13 years. The up-front cost was a lot higher, but over 13 years it's been cheaper than going to the cinema once a month and not having anything to eat / drink there. And that's just the cost for me: for the first few years when living with housemates and for the last few living with my partner the benefits have been shared by multiple people. Oh, and we get to watch TV shows in the same environment.
I stopped buying DVDs for a while because renting was a lot cheaper, but as BluRay and streaming start to see adoption the second-hand market is flooded with DVDs so it's easy to pick up a film for £1 or a season of a TV show for £3-5.
The real answer to piracy? Give people the product that they want for a reasonable price. Give me a service that let's me download DRM-free movies in a standard format that will work on the FreeBSD media centre box connected to my projector, my Mac laptop, my old WebOS tablet and my new iPad and I'll happily hand over money. Until then, I'll stick to DVDs.