Theaters can survive... but they'll need to change.
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Fuck off with the pre-roll ads. Abusing a captive audience that literally paid to be there was a shitty move in the first place, but now that people have the easy option of staying home, it's not something that can be afforded any longer.
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Fewer screens. The multiplex isn't the future. Movie houses with 1-3 screens will be the ones to survive.
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Accommodate breaks. Construct auditoriums that allow people to get a toilet break without missing the show -- integrate bathrooms into auditoriums, innovate with quiet/silent plumbing & ventilation, and pump the movie audio into the bathrooms. Controversial take: experiment with inserting intermissions.
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Lean heavily into multi-use. Theater owners should strive to integrate live sports, television premieres & finales and live performances (drama, music, etc) into their venue's event calendar.