i could see this working for families. Good for a movie night, and the kids can watch it again the next day. No junk food, no soda, no popcorn, no travel, no getting there late. You can pause it so the parents can actually watch it to instead of running kids out to the bathroom. Movies are $10, that means if you have two kids you'll come out ahead. And if it's not huge, who cares? i doubt this'll take a lot of $$$ to get started, it doesn't have to make a killing to be worth it.
'Yeah, but you can get all those benefits you mentioned above with a $3 rental that came out a couple months earlier. You're really gonna pay $27 more to watch it a couple weeks sooner?'
Oh yeah.. forgot about that. April Fools!