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akuma587 said:

Cinemas have a higher resolution than 1080p.  However, non-digital projectors can actually look worse than a Blu-Ray would, especially on a larger screen.  A digital projector will almost always look better than a Blu-Ray though.

I wouldn't say the blame falls entirely on analog projectors, but rather its the "fault" of the theater owners, who could not run a profitable business if they properly cleaned and recalibrated their projectors and the film reels under the duty-cycle they have to run their business by.

Historically, the biggest problem with the 60 year old 35mm reel film format is that the development process (filming, editing, post production, duplication, et al) meant that if you hit your theater for a private early preview and saw the first run of the film through a clean projector, you would still see a "diminished" picture due to the print being at least four generations removed from the recorded source.

Shooting through a musty, dusty auditorium onto a 30' multiplex screen that was installed in 1983 and hasn't been cleaned once in the 25 years since doesn't help.