The audience of a cinematic movie always knows that the movie is not real, i.e. that at the end of the day they are sitting in a movie theatre with lots of other people looking at pictures projected on a screen and listening to sound coming out of loudspeakers. It is of course part of the movie-maker's craft to do everything possible to make the audience live the movie as if it was a real experience.
    An awake cinema audience with mental faculties fully operational does generally require a coherent plot, although a certain amount of fantasy is permitted in some types of movie.
    And finally, the makers of a movie would be very disappointed if most of the audience completely forgot that they had ever seen the movie the moment they left the theatre.