The hand-wringing has begun. Netflix Inc. (NFLX) might spend $82.7 billion to acquire Warner Bros. Discovery's (WBD) film and television assets, and critics are already composing the eulogy for movie theaters. But "Shark Tank" investor Kevin O'Leary has a different take: "Factually, that's not correct."

In a post on X, O'Leary reframed the entire debate. This isn't streaming versus theaters, he argues. It's a battle for something far more fundamental: human attention.

"People watch movies on their phones, their tablets, their home TVs, in theaters," he noted. "There's never been a more diversified way of screening content."

The real constraint? "The only restraining aspect of content consumption is how many hours people are awake," he added.

It's an interesting way to think about it. We're not choosing between theaters and streaming so much as we're carving up our finite waking hours among an ever-expanding universe of screens.

Why Theaters Still Matter

O'Leary pointed to Amazon.com Inc. (AMZN) as proof that big screens aren't going extinct. Amazon keeps funding major theatrical releases because some cinematic experiences simply can't be squeezed into your living room.

Theaters that invest in high-end technology, such as 70-millimeter screens and Dolby surround sound, offer something streaming can't match.

"Those experiences cannot be emulated in a home," O'Leary said. "If you've got a big-tent release, an action film particularly, most people would want to see that in an adequate surround sound, large screen. You need every tool you can get in the media war."

But Streaming Is Winning the Volume Game

While O'Leary makes a compelling case for theaters' survival, the data tells a more complicated story. Consumer behavior is clearly shifting toward the couch.

According to an AP-NORC Center for Public Affairs Research poll, about 75% of U.S. adults streamed a new release at least once in the past year. Meanwhile, although 66% of Americans still visited a cinema, only 16% maintained a monthly movie-going habit. That's nearly half the rate of frequent streamers.

Rising ticket prices aren't helping. The average cost of a movie ticket in the U.S. now sits at $13.17, according to data firm EntTelligence reported by the Associated Press. In 2022, it was $11.76. Combined with post-pandemic preferences for convenience, the numbers suggest that routine viewing has migrated from cinemas to living rooms.

"There's some movies I would like to see, and I say to myself, I'll just wait until they show them on TV or I'll go visit a friend who has those apps," Maryneal Jones of North Carolina told the AP. "But I just don't want to pay 12 bucks."

So theaters aren't dead, but they're evolving into something more selective. Premium experiences for blockbuster events that justify the ticket price and the trip. Everything else? That's what your subscription is for.