Are Movie Theaters On The Way Out? - Imax (NYSE:IMAX), AMC Enter Hldgs (NYSE:AMC)

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With improving technology and more ways to enjoy films at home, analysts are beginning to question whether or not movie theater chains like AMC Entertainment Holdings

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(NYSE: AMC) and Regal Entertainment Group (NYSE: RGC) will be able to retain customers. As movie attendance in the US wanes, some believe that movie theaters will need to up their game in order to draw viewers away from the comfort of their own couches.Tech InnovationOne of the major threats to theater chains is technology. Home televisions are now capable of offering 3D viewing and sound systems have improved the way Americans watch movies at home. That has left theaters with very little to offer in order to attract customers. Some are predicting that as virtual reality develops and becomes more common in everyday homes, theaters will become obsolete. Not only will the technology make viewing at home desirable, but it will help develop the gaming world to offer more of a connection between the players and their imaginary game-world. That could decrease interest in films all together.Distribution ShiftOne of move theaters' major holds on the industry has been film distribution methods. Historically, there has been a 90 day waiting period between a box office debut and its home video release. However, companies like Viacom Inc.

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(NASDAQ: VIAB) have

proposed changing this structure to speed up distribution to home viewing channels. Cinemas Aren't Giving Up YetWhile the odds may be stacked against movie theater chains, they haven't given up just yet. When home TV screens got bigger, companies like IMAX Corporation (NYSE: IMAX) created even larger movie screens and better audio systems. Regal Cinemas has revamped its seating to include recliners in order to rival the comfort of home viewing. Cinemas are also working to create a more immersive viewing environment by offering customers the chance to watch films in 4D. The 4D experience uses seat vibrations and sometimes even smells in order to make viewers feel like they are a part of the film.