Time has come to develop an internet channel for motion films. On this channel producers must be able to release the film along with the release in theaters. The money is collected for viewing the film in the initial period through advance booking. The required bandwidth for satisfying any among of demand can be provided through cloud computing infrastructure. If more people book the movie more bandwidth is provided and less number of people book the movie less bandwidth is provided.
Technology companies are doing their efforts to improve various aspects so that internet digital movie channel provides the same quality as television or cable channel.
This white paper by Microsoft described the features of Windows 9 that make internet digital movie channel deliver more quality.
Hollywood production houses have realized this long back. Two ventures were announced in 2001. Moviefly and Movies.com. You can read about Moviesfly and Movies.com in this information week article.
Movie industry unable to innovate and come out with new model - the result is SOPA
In this article on Read Write Web, it is stated that Movie industry made #30 billion in box-office receipts and $87 billion in total receipts.
If a digital channel is opened and every day 100 million watch the movies on the first day of its release by paying $1, the industry can get $100 million a day and that amounts to $36,500 million a year or $36.5 billion a year. How much of it will be incremental revenue and how much will be cannibalized from existing revenues is a question for further estimation. But the market size is substantially big for film industry to innovate.
Statistics about film industry 2010 - MPAA (USA)
About Film Halls in London (2009 article) Cheaptest one pound to expensive 30 pounds