When was the last time did you go to theater in India to watch a movie? A typical answer will just confirm the abysmal state of theaters in India. Aplenty of cheap and pirated CDs/DVDs and cable channels have hampered the revenues of Indian theaters to verge of closing. Like all good-old-things viz. kathputali show village fairs, theaters soon will not be able to survive the latest backlash in demand. Didn't you notice that Bollywood directors are eagerly seeking out foreign markets and NRI's revenue than ever before? One reason is, of course, more recognition of Indian film industry, but also that cinema owners in India are not able to provide enough to keep going.
One thing that need to done now is to open markets and remove restrictions on rates in theaters. When airlines can charge flexi-pricing for same seat depending on when you buy them, why not cinemas? Running a movie will half full of capacity is worse than filling the capacity even if ticket price have to be halved. Would you pay same for Govinda's movie as you would do to a Shah Rukh's? It makes common sense to let theaters charge different rates for different type of movies, and different shows - like weekends and weekdays. And as market forces fight, basic principles of economics will tell you that it will be good for all of us.