"Out of the Dark"

The Million Dollar Theatre at 3rd and Broadway is seen with "Mortuary Academy" on the marquee in "Out of the Dark" (New Line Cinema, 1989). A killer is stalking young ladies who work in a phone sex operation. Featured are Cameron Dye, Lynn Danielson-Rosenthal, Karen Lorre, Karen Black, Bud Cort and Divine. The cinematography was by Julio Macat. 

Thanks to Eric Schaefer for spotting the theatre in the film and getting this screenshot as well as the one below. He notes:  

"There are no interiors of the theatre but much of the action takes place in the offices and hallways high above. It's a low budget film so I am assuming the interiors were done on site. The film's director, Michael Schroeder, put his previous film, 'Mortuary Academy,' on the marquee. Both films share some cast members."

 A later shot from in front of the Bradbury Building.

See the pages about the Million Dollar Theatre on the Los Angeles Theatres site for a history of the 1918 vintage movie palace along with many photos.

On IMDb: "Out of the Dark"