This is brilliant! It creates a venue for films that can't achieve wide distribution through theaters without taking away the social aspects of going to a movie and taking away the allure of the big screen.
There's definitely potential in this kind of thing.
You're right, you wouldn't have much luck getting a film licensed by the MPAA. They're just there to crack your kneecaps if you don't.
Swank is the most well known company that sells rights for public performances of blockbuster films. Costs average between $150 and $300 for "non-theatrical" showings (where you aren't selling any tickets)
But why shell out such ungodly sums for the muddied films of the masses? The mobmov makes small showings (< 50 people) feasible, so we can show more special-interest independent films.
And independent films are so much easier to license. For the showing featured in the Chronicle, we watched a wonderful Canadian film called A Simple Curve. It's not something to draw the crowds, but this, at least in my experience, means a more thoughtful and meaningful script. Our showing was licensed through the film distributor (filmmovement.com) directly for a small fee.
So no, you'll never see a movie like Tranformers playing on the wall of your local dilapidated warehouse.
The good news is that independent filmmakers don't like the system either. It restricts their creativity and screws them at every turn. My hope is that as independent filmmakers find out about this new avenue for release, we'll start to see new films produced that are ever more inventive and unique.
There's definitely potential in this kind of thing.