Here's a great article from Mac Filmmaking on why film is dying and paving the way for digital filmmaking! 4 Reasons why film is dying:
Act 1: It’s time to change
I think we really just need a change. The same kind of change that we need, has occurred in the music industry, so why can’t it happen with movies. The answer to this question finds itself entangled in the hierarchy of the Film Industry. The Film Industry has built up a workflow for pumping out movies fast and efficiently and they don’t want to change this workflow anytime soon. They have figured everything out, so that they can write and produce a film for a few million and make four times as much back. The only hope for change can be found in independent production. If companies have a format that is cost effective and doesn’t jeopardize the quality of production (such as Red), indie filmmakers will support it.
Act 2: New Ideas
We also need some new ideas. For years we have been simply working upon a dead format. We all know it’s on its way out, so why do we continue to pump our money into it. That comes back to what I said about the Film Industry. They have their money invested in the film workflow and would rather not change.
One example of a new idea coming to the market is the Red Camera. Red has built a new workflow system for producing films, and many indie filmmakers are eager to get their hands on it. Red seems like a really good solution to these problems that we face and in the future I believe we will either see the Film Industry adopting Red, or creating their own digital format.
Act 3: Conversion
Ever since computerized (non-linear) editing stations entered the market in the late 1970’s, the filmmakers workflow has been compromised. When shooting on film you must have a lab convert your footage to a data file to be edited on a computer. This has become a hassle for many filmmakers when digital filmmakers can simply import their footage right into their personal computers. Until a data format is adopted, the mainstream (film) workflow will be compromised and filmmakers will continue to convert and out convert their footage though labs. This is just one more reason why film is dead, (or at least dying).
Act 4: "Data" enters the dictionary
Many camcorders are now using data chips (usually flash or HD), to store footage. This dramatically decreases the time it takes to import footage and start editing. This principle has also been implemented in the new Red Camera. Now, more then ever, film seems like an inconvenience to send to a lab to be processed.