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Films in theaters can be shown in different aspect rations. If you have an old-fashioned CRT television, movies used to be televised in 'pan and scan' format. The film would be zoomed in on only the action so it would fit the square screen. Of course, you're not seeing the film as it was intended by its director. To get the entire theater version visible on your screen, it is letterboxed. While you may perceive the picture as smaller, you're actually seeing more of the film than you would in 'pan and scan'. Even in modern rectangle shaped televisions, you might still see letterboxing depending or the aspect ratio of the film.

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Q: Why does DVD movie not fill up all of tv screen?
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