*We have many such theatres** in Goblin Town! This is because we are cool.
**The tiny size is of course tied into the awesomeness factor being so huge that if these theatres had normal sized screens, the entire city would turn into a vortex of black-holeiness sucking all of the denizens (and those of several surrounding suburbs) into its gaping maw, and has nothing to do with the seats being dirty with that layer of crud that only comes from never, ever being washed, to the point where you suspect the owners 1) haven't sat in one of these seats since the 70s and 2) if informed of the filth might say something along the lines of "Let them sit on piles of dirt!". Seriously.
While this would be a perfect time to begin my Goblintown Tourism idea, I don't have any of it ready. Oops.