modern era

In the next ten years, as movie revenues exploded, independent promoters and movie studios (who owned their own proprietary chains until an antitrust ruling in 1948) raced to build the most lavish, elaborate, attractive theatres. These forms morphed into a unique architectural genre—the movie palace—a unique and extreme architectural genre which boasted a luxurious design, a giant screen, and, beginning in 1953, stereophonic sound. The movie chains were also among the first industries to install air conditioning systems which gave the theatres an additional lure of comfort in the summer period.




Several movie studio's achieved vertical integration by acquiring and constructing theatre chains. The so-called "Big Five" theatre chains of the 1920s and 1930s were all owned by studios: Paramount, Warner, Loews (which owned Metro-Goldwyn-Mayer), Fox, and RKO. All were broken up as a result of the U.S. Supreme Court's ruling in the 1948 United States v. Paramount Pictures, Inc. anti-trust case.



In the 1970s, porn theatres became ubiquitous in some areas. However, the introduction of the low-cost VHS video system for home televisions has decommissioned many porno cinemas as well as many 'second-run' theatres.



People can pay to watch movies at home after a few short months following their theatrical release, through cable television or streamed from the Internet: pay-per-view (PPV) and video on demand (VOD). Initially, home video contributed to an industry wide slump in the late 1980s (see disruptive technology), not to mention the decline of the 'Dollar Cinema' (where first-run films are pulled from circulation to play at reduced rates for the remainder of their run). The theater industry responded by building larger auditoriums with stadium seating layouts, installing more screens (to allow for more variety and more show times), upgrading sound systems and installing more amenities and higher-quality food and drink. The growing popularity of high-definition television sets, along with HD DVD and Blu-ray Disc players may also contribute to the decline in cinema attendance, although there seems to be little evidence of this at the moment. As of June 12, 2009 all US television stations started broadcasting in the digital format. This could also affect US movie theaters.