Abstract: The disclosed virtual theater system includes capture devices for capturing video and audio of a live event and converting the video and audio into a data stream. The system also includes a production center for receiving the data stream and compressing the data stream to generate a compressed data stream, for determining the number of one or more viewing devices subscribed or reserved to view the live event, and for determining data bandwidth consumption characteristics of the one or more viewing devices. Also included is a server for receiving the compressed data stream, the number of one or more viewing devices, and the data bandwidth consumption characteristics from the production center over a network. The server also duplicates and divides the compressed data stream out to the one or more viewing devices depending on the number of viewing devices subscribed or reserved (cyberseats reserved) to view the live event.