I get the sense that this service would be best for people who have invested substantially in a state of the art home theater system. If I had a dedicated room in my house just for watching movies on an enormous screen with killer audio I would jump at this (presumably because that would mean I was considerably more wealthy than I am). It would be an incredible draw for movie night parties. It will never have mass market appeal like netflix though because I imagine most consumers pay to go to the theater because the experience is better than watching a movie in their house. If they market it as a high end service to wealthy cinephiles, it may very well take off.
Interstellar in 70mm IMAX was one of the most impressive visual experiences I've ever had. It actually has sparked an obsession with space exploration for me.