In simple terms. If it’s a physical DVD that you have and you sell it to someone else, as long as that person has a DVD player, they can watch it unobstructed by a third party.
If I have a digital copy of a movie Z and movie Z is validated against a third party database when I watch it that says that I’m person X and person X can watch movie Z. If I give the movie to person Y, the keeper of that database has to change an entry that says person Y and not person X is now the one that can play that copy of movie Z. That third party has no incentive to change the database entry for movie Z and wants person Y to buy movie Z themselves and create a new database record to validate access to movie Z
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