The studios know this is a moronic process, and know that anyone with any level of computer skill would save themselves the inconvenience and money by torrenting a copy of something they already own on disk.
They're not actually trying to compete with piracy, they want to be able to point to systems like this and say, "See? There are systems in place for people to get legitimate digital copies of what they own, but people aren't using them. We need even tougher laws on piracy!" They did this during the SOPA debate by pointing to the Ultraviolet system (which is equally awful).
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Originally Posted by HarryT
That's exactly the way it works with many modern films which do offer digital downloads. I believe, though, that what's being discussed here is a service to offer digital content to owners of existing DVDs and BDs, rather than to new purchasers. I see that as a positive move; I'm not sure why the original poster is so entirely negative about it.
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Maybe because the system they're suggesting: (i) is needlessly clunky; (ii) requires you to pay again for content you own; and (iii) results is a DRM'd file. These are exactly the same issues as their current system that bundles a digital version with some movies, so I guess at least the studios are being consistent.
I would have thought they would have managed to come up with something a little more elegant; this is the equivalent of Samsung trying to compete with the iPad by releasing a Lite Brite.