The plan calls for replacing 35-millimeter film projectors with digital projection on 20-thousand movie screens in North America.
The "Los Angeles Times" reports that the five studios participating in the plan are Walt Disney Motion Pictures, 20th Century Fox, Universal, Paramount and Lionsgate Films.
Warner Brothers and Sony Pictures are still in talks, according to the "Times."
Under the deal, studios would subsidize the 70-thousand dollar conversion cost of each movie theatre screen. More digital projection means more theatres would be able to run profitable screenings of three-dimensional films.