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Ticket sales are decent still though.

Seems to me really that 1996-2004 experienced a boom and movie ticket sales are still at a healthy-ish clip considering movie ticket prices have outpaced inflation (not to mention pop corn and drinks probably cost a ton more these days too). So maybe '96-'04 should be looked at as an outlier rather than the normal.

Yes the population is higher, but so are the competitive choices. In 1998 you didn't have Netflix, Youtube, DVRs to record TV, you didn't have TV on the scale of Game Of Thrones (let alone 200 different TV shows in your back catalog to get to), you couldn't pirate movies so easily. In '98 your options generally were to go to Blockbuster Video and rent 1 movie for the weekend, and if the 10 copies of the New Release you wanted to watch were gone, well tough shit, you were watching something else, lol. None of that "instant streaming" of new releases that every cable service has today.