Does anybody remember 2005?

That was the year of the summer slump that would not end - a slump that convinced many a pundit that the movie theatre business as we know it was dead. DVDs, flat screen TVs and instant downloading were killing the business, so theatres should acknowledge reality, turn off the popcorn makers, shut the doors and give consumers what they want.

Well, guess what? Now it's the DVD business that's down. After a flat 2006, 2007 is down 8% at the end of the first quarter - and why? The same reason that was dismissed when theatre owners made the case in 2005. There weren't enough movies that people wanted to see.