securitas writes "The CS Monitor's Andrew Downie reports that Brazil plans to open in May the world's largest digital movie theater network. About 100 theaters will use Sao Paulo-based Rain Networks' KinoCast digital theater DRM software. Rain based its system on Windows Media 9 software with MPEG-4 video compression. 'The MPEG-4 software can squeeze a feature film onto a file of just five gigabytes, 15 times smaller than the MPEG-2 technology presently used' at one-third the $150,000 cost. It takes 20 minutes to distribute a 90-minute film over a VPN and the system avoids the costs associated with transporting physical copies to areas largely inaccessible by road - it can cost up to $750,000 for 500 copies of a Matrix-type blockbuster to be distributed. Interestingly, in the affluent USA the fight between the 35,000 theater owners and Hollywood is about who will pay for cinemas to switch to digital projection. In December 2003 the Guardian published a story with more financial and technical details of the KinoCast digital cinema system."