Movies are modern day version of entertainment programmes, replacing drama enacted on a stage, singing by musicians, dances, etc.
Even earlier days, people used to had entertainment in the ways that are popular in those days. People were described to have entertainment in various methods, be it hunting, listening to music, etc.
Some people used to have alcoholic drinks also.
It was described in Ramayana that Bharata's friends tried to cheer him up, after he had experienced bad omens with regard to his father Dasaratha on the previous night, by arranging various types of entertainments.
This indicate that having entertainment is a part of life of ordinary people. Nothing wrong in having entertainment, provided that is in limits.
प्यमानम् समाज्ञाय वयस्याः प्रिय वादिनः | आयासम् हि विनेष्यन्तः सभायाम्
चक्रिरे कथाः || २-६९-३
Knowing Bharata to have been in anguish, his graceful speaking friends
arranged recitation of stories in the palace; so as to erase his
anguish.
वादयन्ति तथा शान्तिम् लासयन्ति अपि च अपरे | नाटकानि अपरे प्राहुर्
हास्यानि विविधानि च || २-६९-४
Some played musical instruments for bringing about peacefulness.
Likewise some others arranged for exhibition of dramas and some others
told various types of jokes.