Dylan's Answer

1- Extravagant theatrical releasing budgets, particularly marketing costs that don't match up to audience trends, that guarantee nearly every small film release loses money or barely breaks even.

2- Lack of communication between the branches of the film industry- it's a little spooky, but often I realize that each area (production/distribution/exhibition/home video) wants the same thing, but doesn't often coordinate to get it as well as they could have.

3- Changing audience trends. Piracy is certainly part of it, but more often seems to be used as an excuse. Since virtually every film is pirated upon release (and often before, ahem, post houses...), why are some films grossing more than ever? Can you REALLY blame piracy for that?