WATERLOO -- The resounding thud that sounded when King Kong fell off the Empire State Building in mid-December was a fitting way to sum up the movie industry's year in 2005.

Nationwide, box-office receipts were down about 5 to 8 percent from the year before, with industry insiders casting the blame on everything from the decreasing quality of films to the ever-shortening window between theater and DVD release dates.

"Attendance was down a little more than that (5 to 8 percent). Actually, attendance has been down each year since 2002," said Tony Tillemans, vice president of Cinema Entertainment Corp, which owns Crossroads and College Square theaters. "That being said, 2002 was a really strong year, 2003 and 2004 were both good years too. But ticket increases kept the revenue up."

Last year was the first year attendance was down enough to lower revenue, Tillemans said.

Area theaters felt a decline similar to the nationwide numbers, though none think the so-called slump is as dire as some make it out to be.

"I've been involved in this industry for 20 years, and some years are not as good as the year before, and that's just the way it is," said Tillemans. "I think it's a little early to panic."

Chad Souder, manager of Crossroads 12, pointed out the unpredictable nature of the theater business.

"When the economy was doing so bad a few years back, those were some of the strongest years the theater has ever seen," said Souder. "Theaters don't follow the traditional cycle of the economy necessarily."

Bruce Stotser, owner of Waverly Palace Theatre and a 25-year veteran of the industry, has seen threats to his business and to theaters nationwide come and go. He's learned to ignore the ever-sounding death knell, comparing the movie business to farming.

"It comes and goes, it's up and down," he said. "When people first started buying VCRs when the price came down, that's what was going to kill the cinema business. Then it was satellite dishes. That was going to kill us. Then high definition is going to kill us. It's always something."

Stotser said he keeps his loyal audience with good customer service, which is easier at a smaller theater. Waverly Palace has three screens, compared with Crossroads' 12 and College Square's eight. And, he said, movies provide a communal experience, with 200 people laughing at the same thing or hanging on to the edges of their seats together.

Said Souder: "I think the theater is still different than anybody else's house. A lot of movies you cannot replicate at home. If you watch 'Harry Potter' at home, I don't care how nice your TV is, it's not 40 feet wide. And I don't care how nice your stereo system is, there are not 18 speakers in your living room."

The comfy couch conundrum

Still, it is becoming easier for film fans to wait for the DVD. The home video world increasingly nips at the heels of the big screen. On average, movies go from theater to DVD in about 4.5 months. The hit film "Chicken Little" debuted in theaters on Nov. 4 and will be available in a take-home version March 21. Some films, usually those grossing less, hit shelves even more quickly. "Rent," which opened Nov. 23 and took in just $10,016,021 in its first weekend, will land on DVD Feb. 21, less than three months after it hit theaters.

The shorter wait makes it easier for some people -- especially those with families -- to see an anticipated movie without as much expense.

Bobbie Jo McDowell said in an e-mail she and her husband enjoy watching action movies like "Lord of the Rings" and "Star Wars" on the big screen, but others they can wait for.

"Most movies we wait for the DVD as my kids also want to watch it and it becomes less expensive for us," said McDowell. "We have our own candy, popcorn, pop and movie. Besides, we can stop the movie if someone needs a bathroom break and not miss any essential parts."

Five years ago, consumers couldn't expect films on DVD for about six months. "Gladiator," which opened in theaters on May 5, 2000, wasn't on DVD until November of that year. Now, some movies may be available at your local video store and still be showing on a big screen down the block.

Director Steven Soderbergh, known for both audience favorites ("Ocean's 11") and critically acclaimed films ("Traffic"), took the first step in what could become a new way of distributing movies. Friday, he simultaneously released the independent film "Bubble," about a murderous love triangle at a small-town doll factory, in theaters and on cable television. On Tuesday, "Bubble" will be available on DVD, shrinking the window from big screen to small to just 4 days. Soderbergh said he is doing it for the consumer.

"The biggest thing is people having access to the movie who might not have access to it for a while," Soderbergh told The Associated Press. "They might have read about it and they're interested, but they don't live near an art cinema, or they don't have a video store that carries this kind of stuff, and this way they can get it and get a hold of it as soon as they've heard about it."

Souder sees the advantage of a multiple-format release for the makers of an independent movie.

"Moneywise it could make sense. You're only running one ad campaign," he said.

Stotser said a smaller release like "Bubble" taking advantage of more than one medium at once won't make a big difference to a theater like his. But if a big-budget picture were to follow Soderbergh's lead, theaters could feel the effect. There is already an adverse effect on big screens with films opening worldwide on the same date, which was unheard of five years ago, said Stotser. It makes films more susceptible to piracy, which keeps some moviegoers out of theater seats.

No "Citizen Kane"s or "Godfather"s

With some people claiming they would rather wait for DVD, sales and rentals should be up, but that isn't the case. According to a December Variety article, midway into 2005, revenue from home video sales was up just 2.54 percent, compared to a 15 percent gain in 2004. So maybe the problem is the movies themselves.

"I feel like Hollywood has been a little less creative lately. They've tried to crank out a few old routine movies they've made before," said Souder. "There are a lot of people that like movies for the social aspect, but a lot of them … just like movies. It they're not liking the movies being made, they're not going to come."

Still, Souder said he's an eternal optimist when it comes to the theater.

"People are always hungry for a good movie. That's the common question I get no matter where I go -- 'Are there any good movies out?'," he said.

In some cases, said Stotser, the marketing for a film is better than the movie itself.

"There's such hype that when people actually see (movies) it's like somebody popped a balloon with a pin," said Stotser. "(The movie) might start with a bang and then they can't end them, or the story falls flat. It's just one thing or another. They just can't match the films from decades ago."

Hell is other people

Even if it is "Gone With the Wind" up on that screen, some people will still talk through it. It is just the nature of our culture, said our experts.

"It's beyond belief that someone thinks they can answer their cell phone during a movie," said Tillemans, adding the industry is working on ways to discourage that particular practice. "That's just so inconsiderate … but that's part of going out in public now. People (answer phones) in restaurants now.

"Hopefully part of going to the movies is the escape of going in and being captured by the story. Part of the experience of going is to get away from those other things, to let yourself go to a different place for a while … you don't need a phone there."

Sitting in the projection booth above the seats, Stotser can see the lights from cell phones breaking the darkness of the theater. Ushers try to keep on top of it, and if he sees a lot of cell phones in the lobby prior to the show, he'll remind people to turn them off before the movie starts.

Donna Wood of Cedar Falls said she loves the big-screen experience, but is "on the verge of deciding to always wait for the DVD." Her latest example involves a family of eight disrupting her and her son's efforts to watch "The Chronicles of Narnia" prior to Christmas.

"Two of the small kids chatted the whole time; the teens were up and down, in and out several times and worst of all, the baby was set out in the aisle to run free, which he gladly did," wrote Wood in an e-mail.

Wood went on to write about her "gentle" efforts to tell the father to corral his child, only to see the baby running loose again soon after.

"I simply could not believe what I was seeing," she wrote.

A call to the theater gave her the expected answer -- next time, tell a theater employee -- but Wood still didn't find it a satisfactory solution to her dilemma.

"I came home thinking about how often my theater experiences were disappointing, frustrating or aggravating."

Other complaints from frequent Cedar Valley moviegoers included a lack of customer service, sticky floors, high cost of tickets and refreshments and a lack of adequate handicapped seating. Others lamented the lack of titles -- especially limited release movies like "Brokeback Mountain," which arrived late -- available at area theaters. Unfortunately, said Souder, if a limited number of prints is made available, our market may not be the first place chosen to show it. It is something theaters have no control over.

Local solutions

Many local frustrations should be appeased in February, when Crossroads 12 reopens some of its new-and-improved screens for business after being closed for six long months while completing renovations. Tillemans said CEC Corp. hopes to have the entire facility open by May.

"I think people are going to be really happy with the theater," said Tillemans. "I think the market will be more than adequately supplied. Last month we had to pass on a number of movies we would have played."

Both Crossroads and College Square have the option of expanding further in the future if necessary, and though having 12 screens unavailable over the holiday movie season wasn't ideal, it was necessary.

"It was obviously disappointing that we didn't get it open in time (for the holiday season), but we want it to be nice so we're not going to rush anything," said Souder. "We would rather take the time because that's what Waterloo really deserves."

Contact Kelsey Holm at (319) 291-1464 or kelsey.holm@wcfcourier.com.