Experiments along these lines have already been performed. The struggle between VOD and theatrical is one of the major battles underway in Hollywood right now.

Experiments along these lines have already been performed. The struggle between VOD and theatrical is one of the major battles underway in Hollywood right now. Contrary to what you might initially suspect, the studios are in favor of VOD over theatrical. It's the exhibitors (theaters) that are fighting it. Here's a youtube interview with the NATO (theater owner trade association) president which focuses a lot on the VOD issue. http://www.youtube.com/watch?v=u5_Habwshog http://www.youtube.com/watch?v=u5_Habwshog