Going to the movies is still very much a thing, you only need to look as far as hits like Dune Part II, Godzilla x Kong The New Empire, (and to a lesser extent Godzilla Minus One) the Mario movie, Barbie, and Oppenheimer.
The problem is that most Hollywood movies these days are such godawful trash that they've torched whatever goodwill they once had and people are much less willing to give the benefit of the doubt to anything that looks vaguely suspect.