Most theaters will get a hard drive containing the movie, some (I think less often now) will get it through a satellite download. It’s not streamed online—the movie sent can be upwards of 1TB (or more) large. The movie is then “ingested” into the theater’s show management server, and played from that server.
To prevent leaks, the file is of course encrypted and watermarked, and the decryption key that the theater is issued is locked to the physical projector that will be used to play it.
They are called “Digital Cinema Packages” or DCPs.
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