Bluntly, who has the money to go see a movie these days? Tickets can run north of $20, with popcorn and a soda adding another $15. So, two people seeing a movie is $70 ... for two hours of entertainment. That's fine if it's Penn & Teller ($92 tickets in 2006) and you get to interact with them in the lobby afterward (Teller is actually a delightful guy to talk to), but not for a random movie.
I'm not a fan of reboots, prequels and sequels, but I'm absolutely not shelling out that sort of money unless a friend or acquaintance says something is must-see. The last movie I saw in a theatre was Dune 2 ... and I only went because one of the guys on the local Discord had a membership allowing all of us to see it for $10.
People aren't looking for less entertainment, just affordable shit. I grew up seeing random movies in second run at dollar theatres in the '80s, which was admittedly far more expensive after concessions, but still easily doable for under $8.
Quality is of little import when people can't afford to go in the first place.