Dollar theaters, also known as discount theaters, second-run theaters, and sub-run theaters, are places that show motion pictures for low prices-- often for as little as a dollar-- after the films leave first-run theaters. These low-cost movie houses had their heyday in the 1980s as Hollywood studios were churning out motion pictures quickly, and the number of American screens had not yet expanded to catch up with the supply. These theaters, often the older theaters in older parts of town, typically had just one or two screens while newer multiplexes were built in the suburbs for first-run films. Film refers to the celluloid media on which movies are printed. ... ...

At that time, of course, the VHS was just beginning to catch on, and the DVD had not yet been invented. Consequently, budget-conscious film-goers might wait for a film to hit the local dollar house instead of shelling out twice or thrice as much money to see the film first-run.

However, there were problems in the industry. For starters, in the view of many film studios, these theaters were treating films as loss-leaders by charging little for admission in an effort to score profits on high-markup (and typically high-calorie) concession items.

As the 21st century dawned, a pair of factors conspired to drive many discount theaters out of business: 1) an oversupply of American movie screens caused by ambitious overbuilding allowed films to stay longer in the first-run theaters, and 2) the "window" between theatrical release and VHS or DVD release continued to shrink. This latter factor convinced many moviegoers that it was simply not worth the money, hassle, and possible encounters with noisy fellow patrons and sticky floors.

And so, while there are some dynamic operations such as the Jefferson Theater in Virginia and The Crest in Seattle, discount theaters may be in the twilight of their existence.