Watching movies is haram as it includes looking at things that is haram and listening to things that are haram such as music and obscene language.
If a movie is free of any such thing than it is not wrong to watch them. A movie or a documentary must not contradict with once remembrance of Allah. It should not distract one from remembering Allaah or keep one from doing something that is obligatory.
Watching movies has a bad effect on the individual and on the ummah. These include the following:
1- Movies provocates the desires.
2- promotes immorality as it is made attractive and appealing and the right thing to do.
3- Teaching the crimes and making their justification. And making it familiar to young and old
4- causes corruption in marriage. Wife finds husband ugly and vice versa. Thus making adultery look beautiful.
5- Spreading corrupt beliefs. Making things appear as they are not. Avoid movies attributing the powers of creation and destruction to researchers and inventors, or propagating magic, soothsaying and claims to know the unseen.
6- wastage of time, energy and resources.
And there are other evil consequences.
Shaykh Ibn Jibreen (may Allaah preserve him) said: Another of the evils of looking at those beguiling images and enjoying watching them is those images which are shown in movies on videos and on the TV etc, which show images of adorned women, especially those which are broadcast from foreign countries, and those that are shown via satellite, etc.
They are a fitnah (trial, temptation), and what a fitnah. The one who looks at those images cannot be sure that he will remain uninfluenced by the image of this woman or this zaani (adulterer) or this one who is committing evil and showing him the way to do it. He may not be able to control himself and stop himself from looking for ways to fulfil his desire, if he does not have the faith to stop him looking at these images, whether they are drawings, photographs in the pages of newspapers and magazines, or they are shown in direct broadcasts or in movies and the like.
These sins and haraam things are prevalent everywhere, and they are calling people to commit immoral actions. When a woman watches these non-mahram men, she cannot be sure that her heart will not incline towards committing immoral deeds, and when a woman sees these immoral, adorned women she would be tempted to imitate them because she will think that they are smarter and stronger than her. That will make her cast aside the garment of modesty and uncover her face, and she will show her beauty to strangers, and she will become a fitnah and what a fitnah. End quote from the website of Shaykh Ibn Jibreen.
And Allaah knows best.