How we consume media over the last 20-25 years plays a part, I reckon. No matter how good your home theatre setup is, it pales in comparison to a theatre. It's just not as immersive, a home audience probably isn't as focused, and it's just not as memorable of experience.
When DVD came out it was a massive jump in quality from VHS, and I think there was a bit of a shift in the consumer mindset toward the consumption of media. Plus TVs were getting bigger and better, then blu-ray and streaming and pirating and 4K all came along.
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