As time went by, less and less data was required, as the projectors could handle more and more of the task. Movies were delivered by wire, resulting in near-instant distribution (as most of the production and post production was now done on-the-fly by the projection equipment).
Then Sony's habit of buying up weird small innovation companies bore fruit once again, resulting in mindreading video game controllers. This technology was (of course) deployed by Sony Pictures as well, so audiences could influence the course of the film, as they watched it. People would see movies over and over, because they could be different every time.
But while some people were happy with this, others weren't. It turns out that movies made by — effectively — democracy tended to be a little shallow. And if you didn't want to see the movie everybody else did, tough luck — the same complaint people had been making about Hollywood since the beginning of film. But processing power continued to get cheaper, and soon people could watch their own customized movies in their own houses.
However, when movie-watching became a one-on-one experience, it became clear that there were no surprises, and you'd be all too aware of the effort you were expending to move the plot forward yourself. So the mindreading interface was extended to harness the power of your subconscious, so it was still your movie, but effortless and with (usually) pleasant surprises.
People really enjoyed this, and would watch a movie or two every night, which tended to really cut into their free time. People wanted a way to experience this and still have time for everything else in their lives. So the next step was taken, and people could watch their own self-made movies in their sleep. Being able to take your entertainment while you slept, leaving all day free for everything else was an incredible achievement, the pinnacle of civilization.