I don’t see how this is NEWS. Or more to the point, I don’t see why the industry is suprised by this phenomenon. If you look in the sunday ad’s you’ll see a pretty good, or ok, surround sound system starting at around ~$500 bucks. Add that to a decent TV and why deal with the theater at all. Besided seeing the most recent releases, I don’t see a point of waiting in line, paying at least $9 bucks for a ticket, then maybe $10 bucks for some popcorn and a coke, or just $3 bucks for a bottle of water. You get in, wait through at least 20 minutes of previews, while the moron in the row behind you kicks your chair every 3 minutes. I still go through all that to see a movie once in a while, like Crash for example. Great movie, just released, picked up some friends, saw it in a theater. But more and more we look for something at Netflix and choose to watch that instead of dealing with the theater folks.