Final answer:
The motion picture industry saw success in the 1920s with increased attendance at movie palaces, a transition to talking pictures, and Hollywood becoming the film industry's hub.
Step-by-step explanation:
Dream Palace Theaters, which sprung up in the teens, demonstrated not the struggling of the motion picture industry, but rather its burgeoning success in the 1920s. The motion picture industry was not struggling due to audiences preferring live performances, instead, the increased prosperity of the 1920s allowed Americans to spend more on entertainment, and they did so by flocking to movie palaces. Films where not unpopular as silent movies had been a dominant medium, but the late 1920s saw the transition to talking pictures, which quickly took over and created a mass culture. Theaters did not lack equipment; rather, they were a part of an immensely popular industry that was quickly growing, with Hollywood as its epicenter. Furthermore, the industry was robust enough to employ new techniques such as CinemaScope and Cinerama to draw audiences with the appeal of its storytelling. Despite other economic challenges affecting the industry during different periods, such as the Great Depression, movies were a popular escape, with attendance reaching all-time highs.