I think its two-fold...
1. Theatres: They are too pricey, and have way too much advertising... previews are one thing, but when you have 10 mins of commercials before the previews, you have a problem, and that makes people want to stay home.
2. Quality: For the most part, movies kinda suck today. To quote many people, most often today "what's original isn't good and what's good isn't original." I mean, Batman Begins was good, but its not overly original. War of the Worlds wasn't good or original. Too many recycled plots mixed with flashy lights and shiny things. I found myself watching the Sergio Leone trilogy, and while the effects kinda sucked, the plots were solid and original, and they are still good viewing today.
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