Digital cinema is the use of digital technology to capture, encrypt, store, deliver, and ultimately exhibit films (and other content) on screen in a commercial movie theater setting. Rather than utilizing 35mm film stock, which degrades over time and is typically more expensive to produce and deliver, distributors (particularly the major studios) have largely turned to producing films in a digital format that is capable of being stored and duplicated like any other digital media and delivered to theaters via hard drive, optical disc or a high-speed internet or satellite connection. The content is then displayed at movie theaters using a digital projector rather than a 35mm film projector.
The advantages of digital cinema are endless: film degradation becomes a non-issue, screenings can be managed by unskilled labor, production and distribution is faster and less expensive, films can be started or restarted with the push of a button, 3D elements maintain their correct colors, special effects are far easier to introduce, and so much more.
When you capture your film digitally, you grant yourself the freedom and flexibility to make it the best possible release it can be.