Indeedy. I like to be furnished with all the details. I don't get what he's saying. A cinema is not a complex business so I'm interested to hear what he means by 'outdated business model' regarding them. Cinema's seem to be a simple setup to me. Movie industry supplies the film, people pay to watch. How does that become out dated?
By improvements in competition. The short answer is that home video watching has improved by a vastly greater amount than cinema video watching has (or can).
When cinemas started, they were the only way to see a film (or any other video, such as the saturday morning cartoons that were popular amongst children in those days).
When home video watching started, it was limited to people who could afford a home reel to reel projector and few films were available on it.
When home video watching started to become mainstream in the 1970s, it was still expensive (for both the hardware and the tapes), there were competing standards, the availability of films was limited (and almost always long after the cinema release) and the picture and sound quality was much lower (partly due to the recording and partly due to the TVs available at the time).
When DVD came out and became mainstream in the mid to late 1990s and coupled with the large improvements in TVs, home video saw a huge increase in convenience, picture and sound quality and screen size.
By the late 2000s, the combination of massive increases in bandwidth and use of the internet and massive improvements in home digital media playing hardware made both downloading and streaming high quality video possible and practical and at a much lower cost than going to a cinema to watch a film.
Cinema can't even really compete on a social level - most people have enough space at home for a few friends to come round and watch a film.