In certain circles, particularly in cities with a strong theater tradition, it remains highly important, but it's undeniable that it has lost influence due to the competition of movies and television. Just look at the (magnificent) movie All About Eve, a 1950 movie about a theater diva in which many characters make very denigrating comments about cinema and Hollywood. That attitude was already outdated and an artifact of an earlier time even then, and has become absurd now - some people may still prefer theater over cinema, but their numbers and their influence are small.