The movie industry excluded a major portion of their potential audience this summer. All the movies currently at my local Cineplex are rated PG-13 or R! So, of course the family did not take in a movie this past weekend.
Last year, there were many movies released that were appropriate for children, and many of those were really good. And, the movie industry had a stellar year.
This year? There are two kid's movies that I can think of off hand (Nemo and Spy Kids 3), and I personally enjoyed the least of last year's crop (Country Bears) to the best of this years (SK3).
The idea that kids' movies don't make money is just wrong. BAD kids' movies don't make money just like BAD movies in general don't make money, and the industry seems to be less careful of the entertainment quality of kids' fare.