Will Digital Cinema Wipe-Out Today's Movie Theaters?

Phantoman asks: "I work for the Campus Cinema at University of California Davis and we are looking into getting a Christie or Barco DLP system for Digital Cinema projection. Now if this is the wave of the future I ask you all to compare 35mm to Digital. The price tag on a digital setup is roughly $140,000. Without content. 35mm isn't all that cheap, but if my old Century 35mm projectors break I can get replacement parts for usually less than $100-300. If something goes wrong with the DMD (digital micromirror device) I have a feeling those digital projector parts are going to cost me big. Are the movie theater chains going to get stuck with big costs down the road because Hollywood producers want to save money and have tighter control over distribution? As if they didn't a monopoly already: it costs us between $500-1000 (or half of our profits, whichever is more) for each night we show a movie!" At those prices it doesn't sound like digital theaters will overtake 35mm theaters anytime soon, but what would happen if Hollywood suddenly got the "bright" idea to limit 35mm reel distribution within the next few years?

"Digital is all well and good for the production end, but is anyone going to be able to foot the cost for digital on the presentation end or are we going to end up a straight-to-video world? Also, If anyone wants to help donate to a nonprofit for our digital system, email me. We were the second school to have 35mm, I would like to be the first to have digital."