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Or dispense with the hard drives and server, rip or download immediately before watching, and delete immediately afterwards.

Think of it as a video store with one hour delivery.

For backups, assume that if it's readily available via physical media or piracy, it's easily replaced, archiving anything obscure or important by the usual means (hard drive, cloud, tape).

WRT your last point: given that essentially all Blu-ray and streaming releases are immediately and widely pirated anyway, why are official DRM-free downloads of at least older back catalog titles still not a thing? Perhaps in conjunction with a streaming service with a rotating selection that offers discounts to subscribers on currently-streaming titles, à la Game Pass?



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