Digital cinema is taking a big step in Europe. Yesterday we talked about how Sony Pictures’ new ‘Hot Ticket’ service will distribute digital content in the US, where about 5,000 screens are able to display the content. But in Europe, digital cinema equipment provider XDC has signed with four studios to deploy another 8,000 digital screens.

Earlier, the only choice for European theaters was to sign up with competitor Arts Alliance Media. But most theaters didn’t like the cost-sharing deal. This will give them a new choice. “The market needs some competition for exhibitors to see it as real. XDC has been around for a long time and now it has the credibility of studio product,” digital cinema analyst David Hancock said. But he noted how this step could also benefit Arts Alliance Media. “This is good news. [Arts Alliance] needed a competitor to make their offer more credible.“

XDC made the deal with Warner Bros, Twentieth Century Fox, Disney and Paramount, which will give them a lot more credibility. Yes, the digital revolution is everywhere. In ten years there will be no analog theaters left.

To fill up the slow gaps in theaters during the week, Sony’s Hot Ticket will start providing different digital content to theater chains. Soon you will not only be able to go to your favorite movie, but also see a concert, a play or some sporting event. “In the beginning this business is not going to be a huge moneymaker, but this is a long-term play,” Sony’s Rory Bruer said.

Some chains have tried similar initiatives to fill theaters during their slow periods. Theaters in Europe tried showing big soccer games during the summer. And The Metropolitan Opera recently started transmitting their operas in HD live to theaters worldwide with mixed results.

5,000 of the 38,000 screens in the US and Canada can display the digital content. “As digital cinema starts to roll out in a big way over the next couple of years, you’re going to see so many new applications. Just as people are pounding the table for 3-D, ‘alternative content’ will be another part of the business,” Bruer said.

Remember how the new movies at the iTunes store are very fairly priced? Well, here’s how Apple did it. Loss leader strategy, selling the product below its costs. How nice of them right? Well, this practice is illegal in some countries, but since it’s not in the US I won’t mind. As long as they don’t hike the price when they have enough customers.