marginal revolution has some ideas on why hollywood profits are down. i'd add to his list the fact that the price of going to the theater is too high, and that the experience of going to the movies has deteriorated. often you have to sit through inane commercials before the film starts and then deal with rude patrons. not to mention the fact that the theaters often are sterile and don't really entail much of an experience. via cinegraphic.net.