I haven't yet tried this new app, but it sounds like an interesting idea — sort of like subscribing to a movie channel via your cable service, or going to a movie at a cinema. That's because instead of being the usual Internet model of movies on demand, Cinema for iPad has a schedule and streams movies at particular times. You pay $2.99 for the app, but the movies are free. The schedule changes frequently. You tune in when there's a movie playing that you'd like to see, whether a matinee or late-night show.
Update on 10/15/10 -- I can't recommend this app. They've had the same 12 movies since the app was first released. Not really worth the money.