This is correct. And this is how studios structure their deals with move theater owners. The studios take a greater cut in the first week(s) and that cut declines over time. Having cheap alternatives available at any time, especially early in relative terms, stings them. The whole pricing structure is, IMHO, silent collusion. It's maximizes their profit as long as they don't get disrupted. When they do get disrupted, they fight back, as is the case here, and it's the case with the health care industry, politicians, lobbyists, and any other member of the status quo, but now I'm ranting!