When I was a kid, movies aimed at kids or family audiences were few and far between. Even Disney only put about 1 movie a year out.
When my kids were old enough to go to movies, we also had VHS and Cable as forms of entertainment. Of course, the cost of going to the movies had increased, so we were selective on the must see movies.
As the kids got older, video games became a family favorite to do together and my son would rather play Zelda or War Craft than go out to a movie. As he once told me, "dad, a family of four, popcorn, soda's, etc and we see the movie once. But if we buy a game, we get to play it time and again." He had a point. Besides, wait long enough and it comes to cable or VHS.
From what I understand, my grandchildren go to the movies rarely. They too have a wider choice of entertainment; Cable TV, DVD, Internet, Xbox and Wii, not to mention the sports activities they are involved with these days.
My daughter says its better to do Saturday night Wii as a family than go to the movie. I told her I think she is missing a chance at teaching her kids how to socialize.
"Dad, there is no socializing in a movie theater. It's sit there, be quiet, don't make any noise to disturb other movie goers and everybody goes potty before the movie starts."
The last movie my 9 year old granddaughter asked me to take her to was, The Last Airbender, because she had been watching the cartoon version since she was 3 years old and wanted to see the live action on the big screen. She does not often ask to go to movies, but she will ask for a new Wii game. Besides, she is just starting to become an avid reader. She has already read the GRRM novella, The Ice Dragon off my Kindle Fire. I asked if she understood the book and she told me all about it and did not miss a thing. She of course now wants an e-reader for next Christmas and pop pop is seriously considering getting her one...
Just like the publishing industry is going through changes these days, so too are the movie studios as they try to figure what audiences want. It is not because there are no good MG books to movies to make, its the competition they face and so they are very selective on what they make.
IMHO of course since I am not in the movie industry...