I imagine that movies where we have "real" actors will become a popular niche for enjoying the acting of those people and not the plot or events themselves.
Maybe theater will become more popular because ai will automate jobs and people will start pursuing art but I still think that movies will be more popular than theater because they're just easier to access and you have more immersive representations of the worlds/events.
I still think that movies will be more popular than theater because they’re just easier to access
I forgot about AR and VR. I'm pretty sure that in the future we will have technology to see and hear the videos/streams as if you were in that place so theater may actually be quite popular if it's adapted well.