Chris Anderson pens and charts his way to the conclusion that:

Bottom line: even in Hollywood, the home of the blockbuster, hits are losing their power. It’s not nearly as dire as in music, but it’s trending in the same direction. Does this mean the end of movies? Not at all–there have never been more films made, just as there has never been more music available than today, despite the fact that the bestsellers sell less.

It’s not that people aren’t watching films and listening to music, it’s that they’re watching different films and different music–we’re just not following the herd to the same hits the way we used to. I’d guess that most of the decline in box office is due to the rise of the DVD, not a loss of interest in movies.