I feel bad for the independent cinemas but the reality their product is less and less of a consumer demand. Most people don't want to go to the theaters anymore. Sure there are demographics that still will go but the niche art houses are a dying breed. Just a sign of the times.
That's an understatement. Theaters always adapt to the changes and have survived the era of television, cable network, VHS, DVD, and Blu-Ray products. There will always be a population that will seek entertainment outside the home, especially compared to what the theater experience has to offer compared to home. The gigaplex model works well for making money for the sake of customer satisfaction. But, the more community-oriented theaters become, the stronger they are. You may have a good point about cable TV, similar to how DVD sales kills VHS.