Back in the day, cinemas would receive major motion pictures
in the back of a truck, on reels. Kind of archaic, when you think about it. And while digital streaming has become something of an understood commodity in the consumer world, it still hasn't taken the theater industry by storm -- but that may be changing soon. Reportedly, the Digital Cinema Distribution Coalition has inked deals with Disney, Warner Bros., Universal, Lionsgate and Paramount Pictures to "provide each with theatrical digital-delivery services across North America." The DCDC was formed by AMC Theatres, Regal Entertainment Group, Cinemark Theatres, Universal Pictures and Warner Bros., and it has crafted a "satellite and terrestrial digital-distribution network capable of delivering feature, promotional, preshow and live digital-cinema content to theaters."
In other words, we now have five major studios signed on for satellite movie delivery directly to the cinema
, further paving the way for true digital delivery from studio to theater. The point? To cut down on costly distribution, of course. When cinema tickets are already priced sky-high, cutting costs in places like distribution is a win-win for the theaters as well as customers.
If all goes to plan, this type of distribution could go into effect around mid-2013, with around 300 sites deployed. Will you see cheaper ticket prices? Probably not, but it may pause the rise -- at least for a little while.