I'm 'half as much as 10 years ago' but I still watch as much. I don't know if it is a function of changing tastes as I get older or the fact that most theatres in my home town (downtown Ottawa) have closed and moved to the suburbs. The only cinema left in downtown Ottawa is the Bytown, which is an art-house style theatre and I'm fine with that. So I'm watching more international and indie fare at the theatre and I can wait until the Hollywood content goes online. Kihei is prolific with his international reviews and that gives me a good barometer of what is decent; there is more marketing hype for Hollywood content, it is more difficult to gauge what's worth watching outside the Hollywood bubble.
I also watch fewer DVDs since most rental stores have closed. ALthough I've recently discovered an old DVD rental store that carries old stuff. I love perusing through DVDs to discover classics or foreign fare that's on my watch list.
I don't know just how much the internet will disrupt the movie industry yet. Older people prefer to stay home and watch online on their home theatre systems. Cinemas are becoming more the home of the younger crowd and we see more Marvellized content, franchise thrillers and teen screamers for cinemas. Hollywood might adjust it's more adult and mature content to fit international audiences (appeal to a wider world audience and less to just a US audience) and international films might become more popular in North America. More serious films might go straight to pay-per-view quickly, hopefully there is a profitable business model there. But the theatre experience won't go under, it will just adjust.