It's strange to see that people think that the downloading of movies represent the end of the movie theatre as we know it. This is in my opinion ridiculous. The reason movie theatre's would become obsolete is that more and more people acquire home theatre solutions with surround sound and large high-definition flatscreen TV's. Why go to the theatre when you can get the superior experience in your own living room? Downloads are a part of the problem, but not a part that cannot be fixed.
If I could download a movie for a dollar, or as many as I'd like for a monthly fee, in good quality using a variety of torrent technology, this would be a viable option for me. It would be pure profit for the companies - no distribution, no hard copies, no trouble with censorship and the likes of it. The sooner the industry adapts, the smaller their losses to illegal piracy will become. A part of enforcing strict anti-piracy laws should naturally be providing a service to fulfill the needs of said pirates - it's a huge and relatively untapped market. If I could watch any movie I liked in good quality on my own TV at any time I wanted, I would be thrilled. Paying $X per month to download movies that can only be viewed once or only with a certain client so that they cannot be pirated would be a great option, as long as we could get all the movies in one place.