According to Blu-ray.com,
"President and CEO of Time Warner Inc, Jeff Bewkes, commented that his studio would release fewer theatrical film and begin to focus more on building wider consumer adoption of Blu-ray. While the movie studio has seen success, the profits being generated by its home media arm have trumped all box office take.
Warner Brothers is already a leader in Blu-ray releases, has released more classic films than any other studio. Their increased support of Blu-ray should hopefully not only increase the number of quality Blu-ray titles on the market, but also decrease the number of theatrical bombs (and their eventual Blu-ray releases) from tainting movie-goers minds."