I saw a film about the American movie industry yesterday, and the cinema has been losing money to television since the 1950’s so this isn’t big news at all. It just happens to be video games now.
While I agree that the cinema is exceedingly more expensive than video (after the initial purchasing of a television set), there’s a reason: more people are involved. The people working the theatres such as vendors, ticket sellers, maintaince, janitors, all that jazz that you need for a business like that. Not to mention the people who made the movies.
And yes, it is a little outdated in comparison. Infact you can even have your own projection system in your house (my friends do). I’m not sure if technology being outdated is necessarily a bad thing. Is it really that important to have the next shiney object? Of course new technology is better, but that doesn’t make previous inventions useless. Not to mention the resolution of films. I’d say they look pretty damn good for what they’re working with. That being said, I’m sure there could be new ways of making film more “up to date”.
I think the main point of the cinema, and probably the best, is the experience of going there. Going to a theatre and seeing a film on a large screen with other people. It seems more of a community thing than the personal television set in each room in everyone’s apartment in a 30 story complex. I’m sure this is the reason why a lot of people prefer home theatre systems, which is not a surprise considering the culture we live in (particularly those in urban environments).