Who makes the money, though? The music industry makes tons of money from streaming, but less of it goes to artists than before streaming. Gaming has concentrated in fewer, larger studios as well, with a few large blockbuster titles, a lot of very small, single-developer/small team indie projects on steam, and very little in between. To bring it back to the topic, there used to be a place for large budget, unique blockbuster films like Inception, or the Matrix. "Free" and "unlimited" streaming is paving the way to large quantities or low quality, pumped out with adequate visuals, engaging actors, addictive by-the-numbers stories. The industry might make more money, but if all of it goes to the AT&T and Netflix execs, the way it did for music, then I do think it warrants pessimism.
The reason streaming is lowering average quality is the low bar of entry to view content. One of my friends just watched 4 seasons of Mr. Robot this past week with it on in the background while doing other stuff. That's something you won't do if you pay $11 for a theater ticket, and I guarantee if you're sitting there paying attention to every moment you'll be less willing to put up with filler, inconsistencies, and bad moments. As bad as the theater experience is (and it is bad!), keeping a high cost and requiring a time commitment does force viewers to be more discerning, or in another sense it weeds out the casuals.