They show the movies that you will not see elsewhere. You rarely see those same old Hollywood blockbusters as you see elsewhere, but rather some interesting documentaries and European arthouse films. It also has a small coffeehouse and a DVD shop.
It's the heart of Icelandic music culture. The staff is knowledgable, which is a nice difference from the snotty teenagers who normally work in cinemas. They also show movies how they were intented - without any commercial breaks (which is a rarity in Iceland).
On thursdays in the summer there are pub quiz being held in the Cinema. Ideal entertainment for the movie buff.