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Grindhouse is a term for run down theatres from the 70s that showed B action flicks, and often ran double features of these kind of movies. The kind of place Tarantino and Rodriguez spent a lot of their free time as a child, so it the title was an homage to their youth.
The movie Grindhouse was two movies made in the style of cheesy 70s action/horror movies. I think a lot of people didn't get the concept, and it didn't help that it opened on Easter weekend, counter programing works sometimes, but obviously didn't this time out.
I loved the whole experience, especially the fake movie trailers they showed before and in between.