When I visit the cinema, it's usually for the experience, and less to do with catching a new release. For example, I wanted to go see Gravity this week. I could torrent the movie, but I heard good things about Gravity in theaters. Nonetheless, all the theaters within an hour drive stopped playing it, so I'm out of luck.
They should allow people to buy and stream new releases online. Then, I think they should use theaters for a mix of new movies, and old movies. Run themes, have 80s week, or classic horror movie week, or Star Wars week, or Hitchcock week.