Why I think Hollywood should continue to worry about slumping box office numbers and why the video ipod is the harbinger of consumption to come:
1. Going to see a movie in the movie theatre is a very sucky experience. You have to deal with driving, parking, long lines, people talking, cell phones ringing. It's hella expensive and time-consuming. The only movies I will go to the theatre to watch are those which MUST be experienced in the theatre like the upcoming King Kong.
2. DVR/Tivo and Podcast's popularity have signaled a new way of watching media. Tape it then watch it at my own leisure, or tape it and take it to go with me.
3. Small images like thumbnails and icons read better than you think - small screensize and resolution isn't necessarily a big barrier to entry.
4. An audience is more interested in what happened, what were the sequence of events, than how well they were able to see it on a high res screen. If they can watch the sports highlights with audio, or the latest episode of Desperate Housewives with audio, and experience where the story went - that is the core of what they're buying and worth the download time and price.
5. If you could take your DVR/Tivo list of shows and watch them on the road, would you pay for that? If you could take all the dvd's you haven't watched yet on the road, in your hand, would you pay for that?