It's not time to bury the movie industry yet.  The numbers suggest the audience isn't growing much, but revenues are up -- thanks in some part to 3-D movies, which cost more. 

University of Houston communications professor Garth Jowett says people are still going to the movies.

“3-D movies have been a saving grace for Hollywood in the last three or four years,” Jowett says.  “The prices are so much higher, so it tends to hide the fact that audiences remained at least static, or slightly down.”

Movie ticket sales were up 11 percent last month, making it the second-best July on record.  Concerns were raised when “The Smurfs 2” movie bombed at the box office, but much the success of the first Smurfs movie was based on ticket sales in europe.  He says, “You read all kinds of predictions about online streaming, new technologies -- and there's no doubt there's an enormous amount of downloading that's going on -- but it hasn't affected the size of the audience base.”