The Entertainment Complex has a new article discussing the dominant role that DVD sales play in the production of film revenue. The site begs the question that at 47% of all film revenue coming from "home use" does that mean the end of theatrical viewing?
Personally, I don't think so. Especially granting that overall theatrical revenues were only down 1% last year a fact that may have more to do with the number of blockbusters that came out and some films underperforming (like Daredevil because they were so bad, though it did get two DVD releases with a director's cut that was viewable). My opinion, which is based on nothing but shaky anecdotal evidence, is that the market itself is expanding enormously. Will theatrical releases percentage of profits decrease, likely especially with the increase of sales of old and new TV shows (often with unaired episodes) on DVD and the fact that DVD is an "history spanning" rather than "isolated event" purchase.