I thought this at first too, but the viewing habits of children are different. Some kids literally watch the same thing every day, for weeks or months. The convenience of being able to give them the iPad to calm them down at dinner with their favorite movie is probably worth $15 or so per month to plenty of families. Sure you can pirate it for free, but you're really paying for convenience. Piracy is a service problem, and right now playing DVDs isn't the best experience available.