https://www.indiewire.com/2019/06/movie-exhibition-distribution-future-1202152832/
"The 2019 box office is down nine percent from last year, and soon the theaters’ Netflix battle will be joined by Disney+, Apple+, WarnerMedia, and more."
Streaming services are competition for the customer's entertainment dollar but the overlap with movie theaters isn't 1 to 1. Customers stream to get entertainment at home, which competes with other at home options like cable. They go to theaters to get entertainment outside of the home, to get a break from their kids, for a date, for the "theater experience", etc. Where they overlap is when a new movie comes out, and studios charge so much for first run movies (especially the premium ones) that many customers choose to go to the movies instead of spending 25 bucks to watch the same thing at home.
The places that movies are getting hurt:
A large cross section of the people who like to see new movies when they first come out, also prefers the theater experience. Some don't, and are willing to pay a premium to watch them at home early.
Another gap is that a lot of us don't care when we see movies, and will wait until they come out on a streaming service we've already paid for. That's more true for low end movies, dramas and comedies. Horror movies around Halloween, kids movies around school vacations, blockbusters and other segments still seem to do well in the theaters.
There's also a gap with viewers choosing home content over theaters. Netflix and chill is replacing some date night revenue, and watching full seasons of shows has replaced movies as the "top" form of entertainment. If you think about it, the Marvel universe, which are the highest grossing franchise in history, is really more comparable to a show with multiple seasons, than a bunch of individual movies.
Which brings us to the last point. There are only so many good creative people and actors and content creators and producers and investor dollars and so on. The top talent is now getting split between the traditional moviea and TV shows and the streaming services, who want multi season shows which keep people coming back instead of two hour movies that you might watch once or twice. TV is filling air time with cheap reality TV content, whether it's who is the best singer, who is the funniest comedian, who is going to ####, which house do you like, which chef did the best job, etc etc. They don't need to create scripted content, they just need good quality production and marketing. The streaming services are investing huge money in the top shows, which draws the best scripts and creative talent.
That leaves movie creators focused on things that work better in theaters or short formats. CGI and expensive actors are already expensive for 120 minutes of content, let alone a 500 minute season. Marketing dollars are expensive for something you only consume once, for about ten bucks, like a movie. They're barely worth it for small budget niche films.
That's why we see so much of the same #### in the theaters. It's cheaper to do marketing for the next mcu movie, because so many people will watch it without ever seeing an ad. It's easy to market typecast actors we know, like another Jennifer Aniston romantic comedy, even now when she's 51. Its cheaper to market sequels than to educate consumers on a new plot and characters.
So you and icon are both right - top end movies are doing great, and overall theater revenue is down. And overall content creation is up. And theaters will bounce back.