In a copyright free world, movie theaters would of course be free to copy the movies too. Benefits would accrue to landowners, basically, rather than producers of movies.
Change it how? All I ever hear are handwavy proposals about "other ways" of doing things. How could you get a significant return on an investment in producing a film? Even non-flashy films cost a lot of money to make.
Or would films become the exclusive province of wealthy sponsors with money to squander?
My guess is that people who like movies so much as to go through the trouble of copying them also goes a lot to movie theatres.