Good thing I had the "privilege" of experiencing both.
I saw FotR before reading the book, and I would have to admit that I couldn't follow the story much. I just understood when I have read the book. But I have read TTT and RotK before seeing the movie, and I was able to understand (even criticize) the movies.
Reading the books first is better for me because I can leave room for my limited imagination to roam freely around, which would have been subdued had I watched the movies first. But I had to be prepared for seeing mistakes in the films--which actually gave me a shock.
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