Theaters are already taking a hit in the last few years but they will rebound. The medium will evolve. We already know J. Cameron, R. Rodriguez, G. Lucas, R. Zemekis & a few other top directors are pioneering the next step in cinematic experience, 3D digital projection. In 10 years (maybe even 5) the film viewing experience will be completely different, 72 FPS IMAX quality 3D imagery, and it will only be available in cinemas, for all but the riche$t home theater enthusiasts, for quite a while. And it won't be 3D in the sense of cheesy crap flying out of the screen. More like a sense of complete immersion in the scene, like that's YOU flying down the Death Star trench (Yes all 6 Star Wars, LOTR, many many classics will be re-released in the new 3d format).