A few things here:
1) Cinema Is Not Dead, Its Just To Expensive
We have enough data to prove that people actually do prefer to go out, but the price isn't right. The best example of that was MoviePass, $9.99 all you can see in theaters. The issue with MoviePass, was its business model. They paid full price for the tickets, which could be well above $9.99, and they banked on people not using the service.
The exact opposite happened. People ABUSED the service and went all the time, causing the company to go broke. Or on Tuesday nights, when chains like Cinemark have $7 tickets and $5 any size popcorn, people come out. Cinema has a pricing issue.
2) BingeWave's Model
Guilty of self-promotion, but we started BingeWave Cinematic Distribution with the realization there is riches in the niches. The result has been some really profitable screenings with almost nothing spent on marketing.
3) Marketing Is The Difference
The only real difference between a Blockbuster and quality Indie Film is marketing. Give Indie films access to their targeted audience, and they could generate real revenue.