In traditional movie distribution, the chief constraint was the costs and logistical problems associated with the physical movie prints: each print-- the reel(s) fed into the projector-- costs more than a thousand dollars, and it can take weeks to send them from theater to theater. With digital projectors, theaters download movies in the form of data packets, beamed down from satellites orbiting the earth.
This could be good news for independent films, because it means that it's easier for a chain theater to add new films to the screening line-up, while also cheaper for distributors, when you consider the cost of prints. The issue: these new systems are extremely expensive, often costing a cool 100k.
Major chains like AMC have taken the bait, and between the Christie Digital System, and the Sony Digi-cinema System, there are now ~10,000 installed digital projectors worldwide. A business idea I'm toying with would allow Indy-film fans to purchase tickets for smaller films, shown at the local multiplex; if not enough tickets are purchased, their money would be refunded, and the Hollywood shlock would play. This assurance contract is important because it reduce the risks for all parties; the site Groupon.com has further refined this idea, in a way I hope to do, by geographically localizing it.
--Readers: I'll keep you informed of the latest trends.
