Back in the day, people had these things called "lives" with irl friends and loved ones. Back then, watching a movie was a special thing you did that brought people together, they didn't need to binge 10 hours of content every night. A few movies a week was plenty.

Part of why it's niche is they basically abandoned that line of business. Remember that they even tried to spin it off into its own separate company, and only changed their minds after a huge backlash.

Many companies fail to adapt and stick with old business models. Netflix did the exact opposite and took their dvd business behind the barn and shot it in the head.