One word...GREED.
Its the name of the game in any retail operation. I live in a city of about 37m, we have every possible retail chain in this city. We also have many empty storefronts, from failed business's. We have a Super Walmart, a Super Menards,(opens in Oct.)and believe it or not Home Depot that is planning on opening across the street from a Menards. Our unemployment level is soooo low, that as a retailer, we are forced to take any applicant that walks in the door. Heck, Walmart even comes into our store trying to lure our employees away (handing out business cards). The theatre industry isn't any better. Why would a major player want to open a 10-12 screen only 10 rural miles away from their existing 10 screen?? Huh, doesn't make sense. Ten miles from their future site is a single screen, 3 screen, and 6 screen. Where do these retailers think the customers are going to come from? Its farm land out there!
I'm just hoping that a competing theatre in my area goes belly-up, so that I can pick up a complete booth setup for home use! Maybe a spare DTS system too!