Heath McKnight posted a review and analysis of the new RED EPIC-X digital movie camera at the Digital Facility blog. The people at RED were the first to really break into the high-end movie production field with the RED ONE, a digital camera that rivaled the resolution of the industry standard Panavision 35mm film camera, and accepted the same lenses as the Panavision (which enabled cinematographers to capture more of the traditional film effects they wanted), at what was estimated as a cost 1/50th of that of a single Panavision film camera, without lenses (Panavisions weren't available for sale, only rental).
All this leads to McKnight's summation - "The RED EPIC-X is truly a celluloid killer, and it's being used on everything from mega-blockbusters like the upcoming Hobbit and Spider-Man films, to independent filmmakers and video producers."
Between advances in digital film equipment and the rising cost of traditional film stock, I expect more and more of the movie production industry to go fully digital. As that happens, look for more and more movie distributors and theaters to shift to digital formats as well.
Source - RED EPIC-XL Jeremy Wiles and Creative Lab, Digital Facility