I don't go to the cinema... so it'd be a +1 for the film studios in terms of revenue from me. There is probably a lot of people who want to watch the latest films but don't want to go to the cinema, for various reasons. I think this device/method would be a success.
I still think there would be a place for cinemas as a lot of people would still want to go. However, it may cause a drop off in numbers to some degree.