Recently, the FCC gave the green light to the Motion Picture Association of America's plan to create a system that will allow movie studios to stream newly released films directly to viewer televisions at the same time those films are in theaters. This development has raised a number of concerns from people on both sides of the movie business. Will direct streaming discourage film piracy or will it make pirating films easier? Will the ability to cheaply, legally watch new movies at home irreparably damage the theater business? How will this change what kinds of movies are made and released?
It's very possible that direct streaming will bring about a new age in the consumption of cinema. When VHS (and to a lesser extent Betamax) first made it possible for most moviegoers to watch feature-length films at home, the industry moved in a new direction. Video sales got factored into a film's profitability, the direct-to-video format increased the sheer output of new films exponentially and the independent film scene exploded thanks to the money-making potential of distribution outside of theaters. I think the direct streaming plan has the potential to create a second renaissance in cinematic diversity. Provided digital distribution rights aren't prohibitively expensive, the technology would open the way for countless movies too niche for theatrical distribution to reach a wide audience. Given the disconcertingly brainless state of major cinema in America today, an alternative model that more or less removes the competition pressure from the market (which on-demand streaming would do) sounds like the savior of a struggling art.
It's only natural to worry that the ease and efficiency of direct streaming will hurt the survivability of movie theaters, but there are a few things to consider before we plan for a cultural funeral. It's false to assume that most people who go to movie theaters are motivated primarily by excitement for a particular film. Rather, theaters are social establishments. Saying that direct streaming is the death of movie theaters is like saying that home kitchens are the death of restaurants. We go to the cinema to spend time with friends, for dates or simply to experience something with a large group of people. It's the same as watching a live baseball game at the stadium. It's less convenient and more expensive than watching the same game at the same time in your living room, but the experience is totally different. If any theater is going to suffer from direct streaming, it's the corporate multiplex. It's more likely that massive, 18-screen theaters that rely on a profit model that needs many high-profile blockbusters to run simultaneously will see their numbers drop than to see a similar loss on the bottom line of community art house theaters.
As for the question of movie piracy, the concern is negligible at best. The direct streaming program, as outlined by the MPAA, includes a system to limit digital output, which basically translates as an inability to capture the broadcast data on a traditional recording device. As with all technology there's likely a work-around for this safeguard, but anyone with the equipment, know-how and motivation to do such a thing is likely already using existing methods to pirate movies. And frankly, if a movie studio didn't believe direct streaming was more profitable than not directly streaming, it simply wouldn't participate in the program.
For all the worries surrounding it, the MPAA's direct streaming system is a step forward for the movie business. It's an embrace of new technology and a substantive recognition of persisting trends in the way everyday people consume media.