"In my opinion the quality of the product has degenerated to a point that the retailers of those products are having trouble selling the product."
Did you know that studios sometimes can make more revenue in video release than it can running it in a theater? Troy, ST Nemesis two I can name off of the top of my head.
Yes, I became aware of that about 6 months ago.
I believe the lack of response in theaters was an earlier sign of the same problem, allowing, as Big Sky points out, excessive theater prices another problem discouraging attendance.