>We need a simple and cheap distribution channel. In 20 years there will be no movie theaters. They might remain as a novelty, but 90% of them will be gone. I

>We need a simple and cheap distribution channel. In 20 years there will be no movie theaters. They might remain as a novelty, but 90% of them will be gone. I don't completely agree with this part. I do think the number of theaters will decrease but I don't think they will become simply novelty items (in the way that drive in theaters are). There are several selling points to theaters only one of which is "new releases". The other primary selling point is the experience, which breaks down into two sub points. One is "you can't get this at home". This covers things like IMAX, even a 50" 3D TV doesn't even come close and with any foreseeable technology it just isn't going to happen in the home outside those few who build $x0,000 setups with a dedicated room. The other part of the experience is the social aspect, which covers the growing trend for theaters to be less the "500 seats" style and more the tables serving beer and real food style. So I think theaters will continue to be popular. The ratty "cram 500 people into a room for a new release" variety will die out. IMAX style theaters and those that provide a more "dinner and movie with friends around a table" style will grow. I think if you look at the industry statistics, this is already happening. I know at least around here (Northeast USA) numerous old style theaters have either closed or converted to the "dinner and movie" style and IMAX theaters seems to be popping up everywhere.