We develop a full density-matrix theory describing the holographic motion picture, the direct recording of a real moving image into an inhomogeneous spectrum of a medium using spectral hole burning. The main emphasis is on the time resolution of the movie. It is concluded that, with a frequency scan rate faster than the square inverse of the characteristic time of the event, the moving image is faithfully recorded, the only limiting factor being the bandwidth of the medium. From the numerical simulation, the ultimate time resolution of the order of nanosecond is achieved when the scan rate is above 5 10 1 6 Hz/s for a cryogenic Eu 3 + :Y 2 SiO 5 crystal. An experimental demonstration of the movie was performed for this crystal.