I was informed by a colleague on how digital will make inroads into the film projection market.

Instead of going after the logical big markets of New York and Los Angeles, they will pursue the small midwestern towns first.

This approach makes a heck of a lot of sense. Shipping costs will be dramatically reduced if a DVD is shipped instead of a huge pancake of 35mm film.

The Digital innovators will install the digital projection systems in these smaller communities. The benefit to the smaller communities may be the opportunity for screening a more diverse selection of films.

The pressure for a certain size audience may be reduced since the production cost to make a DVD and ship it will be significantly less then making and shipping a 35mm print.

Apparently, many are in agreement that film origination is still way ahead of digital video.
It appears that film origination, then digital destination, will be the wave for the next decade at least.