By the end of 2007 more than 5000 North American movie screens will be capable of showing digitally distributed motion pictures, some of which are produced in 3D. The distribution medium, however, remains mechanical, i.e. the actual digital data are stored as encrypted files on hard discs. Downloading of the files via satellite has been successfully demonstrated internationally, and undoubtedly will replace the ferrying of hard drives soon.

The key to this high quality, economical motion picture distribution system is...

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