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Poor marketing and limited theater releases is why and studios can blame themselves.
The huge improvements in TV screens have a lot to do with it too, I think.
When we only had CRT screens at home it was a big jump in quality to go to the theater. But when you have a 4K screen in your living room, there's less reason to go to the theater.
It's not just that they were CRTs.
You can get an excellent picture from the CRT computer monitors of the '90s and '00s, with high resolution (up to 2048×1536—better than 1080p!) and color rendering that's arguably better than modern LCDs.
CRT TVs had low resolution, and NTSC/PAL has pretty bad color fidelity as well, but one of those high-definition CRTs connected to an RGB component video input (VGA or SCART) carrying high-definition content (DVD or Blu-Ray) is another story entirely.
Yeah I was talking about TVs... we are discussing movies after all. Moreover, TVs that the average person has.
There's a huge jump in quality between the TVs the average person has now compared to 20+ years ago.