Idk, I don't see it being as easy as you say. If it was then everyone would do it by now with the popularity of digital content. 

I gotta say I don't think I would even want this. I'd rather just pay a subscription fee or rent movies. They just need to have every movie rentable for a decent price (2.99 for movies that just came to dvd).

On a basic idea level, perhaps.
But your math is still way off.
90% subscription attach rate? You know that there are more than 10% of console owners not even plugged into internet at all.
Sony is happy beyond belief for reaching 50% rate on PS4, and that's with a small base of mostly core gamers. And if 50% of those don't find value in online gaming and up to 6 free games a month, surely there will not be 40% of them interested in movies.
Also, most of those US based subscribers already subscribe to Netflix or similar services, which are accessible to them via many outlets outside the console.

But, if you can adjust the math and make it worthwhile for both film studios and console manufacturers, you might have something to base your proposal on when you take it to Sony and MS. But be sure they will concentrate on math first and foremost, and legalities a distant second, so you can have no wavering in your financial structure.

I know the atach rate thing is pretty high. I am just think of a situation when the system has become well established and as such represents a primary reason most people will even want a PS+/XBL subscription. Mind you, the service could also work just fine even if you aren't subscribed to PS+/XBL. Thinking about it, it would actually be all round better if it doesn't require you are subscribed to PS+/XBL. That way people already on a paid service wouldn't feel they are paying for yet another service.

I think it will be worthwhile for everyone. The consoel manufacturers get like 10c on every dollar of ad revenue. The studios don't have movies just sitting around in oblivion with no traffic. No one is tellin the user to pay $10/month or anything. 

Keep in mind that these studios already do this with tv providers. they get ad revenue for making their movies available to tv providers. This is pretty much the same thing. Just that they stand to make a lot more on a per movie basis than the already existing business models.

Lets not forget the millions that are also already being lost with regard to piracy, with a system like this, you can literally kiss piracy good by.

Lastly, you will also be able to view on other devices, it will just work like how remote play works with the PS4/PSV. The console will stream the movie you have downloaded to it to any device you are where ever you are.

It actually can. If we want to go into details.....

Lets assume that 10,000 companies pay as much as $1000k for ad placement a year to sony. Thats $10,000,000,000 ($10B).

if $1 is allotted to every viewed movie, being that the end user at least sees all 4 ad slots. Then basically money will be dolled out based on how many users see an add slot/movie. Now everyone isn't going to watch everything. But if 20M people for any reason watch a particular movie, then that particular movie provider gets $20M from that $10B ad revenue pool. You are right though, movies will not generate $80M, but thats not because the money isn't there to give the content provider... its cause there most likely won't be up to 80M people itching to watch a most movies that are like 3-5 months old.

I sincerely don't understand or even believe anyone that thinks like this. 

• one system has you paying $8 monthly for all you can watch or $2.99 per movie as a rental
• another system has you paying NOTHING for all you can watch. 

There are reasons its not easy. But running on a closed system like a console circumvents those reasons. Its one of those things that the only people that could actually do it effectively are console manufacturers. since unlike every other service out there with this one there is an option to download the movies. Better yet, they can even take it a step further and allow you play pirated movies. Its the same thing. You go to your friendly torrent site, download the movie, but it will only play on the console if it has its right name and release year. the the console will be able to se it and play it. tehy ads still come in, and the studio and sony/ms still get paid regardless of how you got the movie you are watching.

Right now, everyone is going about it the subcription way, but i think that model is flawed.

Yup, thats how I feel. For one, I am not going to watch every single movie. There is not enough time in the day. Also, those ads like the ones in the pictures you posted would make the movie unwatchable for me. Those ads are gigantic and I would have to deal with them the entire time?? No thank you. I also think that making things free automatically cheapens their value. 

Ultimately this would be a terrible business model for the Movie companies. They make much more money off actually selling their movies than they would off ad revenue alone.

There is just so much wrong with everything you have said that I don't know where to begin. And the stuff you said about actually seling movies.... what do you think this is? 2008? I have not met a single person in 4 years that actually physically bought a movie. Physically renting movies have also gone downhill that its not ven funny. just look at what netflix has become today (lucky them since they were quick to adapt) and the unfortunate blockbuster. You living under a rock or something?

and you dont have to watch everything simply becaue its available. Thats like saying I hate gaming cause all the games are free and I dont have to buy them so there are too many games to play. I can imagine that some people will say stuff like that, but thinking like that is probably at least sort of  borderline disorder. And what you said about  free stuff  cheapens its value???? Damn.....

lastly, I also did say that if you want to pay, so you wont se adds at four intervals for 15 seconds during the entire lenght of your movie... the option is there too.

I wasn't talking about physically buying movies. The sense of entitlement of people these days is incredbile. Not everthing needs to be free. I will pay to watch a movie, I am not going to pay for the privelege to not watch ads. 

Nothing is really free my friend, as more content becomes free, quality takes a nose dive. That is exactly what will happen. You think hollywood is going to spend money making great movies just so they can give them away for free? You get what you pay for. Thats why when you subscribe to netflix 90% of what you get is garbage, but its fine because its cheap. Hollywood isn't going to produce quality content using that ridiculous business model and neither will game companies.

This just gives me a headache. If I want to watch a movie, I will buy the real thing on Amazon, or some other place, pop it in, watch, then put it in it's case.

It's ironic how the further we go into the digital world, the more complicated and fractured we get.