The movie theater business will definitely evolve if it wants to continue, and there's way too many powers interested in making it continue, but I personally can see both sides of the argument; we don't need something like, I dunno, "Sharknado" to be released in cinemas (do they, actually??), while something like Interstellar or Blade Runner should definitely be experienced like that.
With reduced budgets, cinema released movies can prevail and find a more, say, "selective" (for lack of a better word) and interested crowd, the way vinyl records have resurfaced in recent years. I could see cinemas going the same way that theater plays (which once were considered "popular entertainment") have gone.