According to recent industry statements, the major Hollywood studios are planning to complete the switch to digital by ceasing to release 35-millimeter film altogether; 20th Century Fox promises to phase out film by the end of next year, and the others are expected to follow. Which means that the analog projectors that have whirred along for decades will be suddenly rendered incapable of playing modern movies. For many seasonal theaters, the dog days of this summer may be the only days they have left.
Digital projectors are compatible with hard drives and files called Digital Cinema Packages, which are cheaper to produce and easier to disseminate than film. John Fithian, president of the National Association of Theater Owners, says 30,000 screens have already been converted, leaving nearly 10,000 in some stage of transition. As he told exhibitors at CinemaCon in 2011, “If you don’t make the decision to get on the digital train soon, you will be making the decision to get out of the business.”
See the full story here: http://www.nytimes.com/2012/08/25/movies/resort-towns-face-a-last-picture-show.html?_r=2