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I think that very few directors would want to forego the possibility of their film appearing in theaters. Films are designed for theaters and to those who make films, the home-theater experience, which increasingly consists of a laptop on a bed, is a paltry imitation.

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Why would something like this necessarily forego theaters? I suspect that a studio built like this could work out licensing agreements with theaters, and that theaters might even become more profitable and affordable because of it.

While yes a theatre experience is more "grand" I think I'm not alone in saying that I've watched more movies at home in the last year alone than I have spent on theatre tickets. What they'll lose in "quality" they will most definitely make in quantity. Ease of access to the content will lead to higher viewership.

That makes sense when it comes to the business end but essentially you have to convince good artists to work with a far lesser medium for the sake of "higher viewership".

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