Movie sales, especially for blockbusters, have pretty thin margins. They wouldn't be able to compete with retailers who use (or at least, they did) new movies a

Movie sales, especially for blockbusters, have pretty thin margins. They wouldn't be able to compete with retailers who use (or at least, they did) new movies as loss leaders. Also Cineplex in Canada for example will pre-sell you a digital copy of the movie when you buy a ticket. Movie theatres have died before, like in the 70s. The way they were revived is exactly how you described it, by making it a destination (in the 70s, by refining theatres, which were generally seen as grubby and low-class into something more dignified) and not just a place to watch a movie.