Wow, in Southern California we are seeing the closure of several movie theater multiplexes. First, it was the video stores like Blockbuster and Hollywood Video, now it is movie multiplexes. Some of these theaters have added an IMAX theater in place of the closed stages, but others have closed completely. In California, the movie multiplexes are often the largest space in a mall.
In places where there are lots of tourists, however (like Hollywood), the theaters are doing very well. They are oftentimes the cheapest outing when compared with other attractions like Disneyland or the museums or even some of the restaurants. I think it has to do with the rising costs of seeing a movie, as well as the last two years of lackluster movie offerings and bombs. Hopefully we will see a revival of the independent neighborhood movie houses.