My guess is there's some provision in the "Family Entertainment and Copyright Act" that they think makes this streaming legal. The text clearly makes the displaying an edited version legal and does talk about transmitted works. https://www.law.cornell.edu/uscode/text/17/110.

The key point is in (11). the following are not infringements of copyright: "the making imperceptible, by or at the direction of a member of a private household, of limited portions of audio or video content of a motion picture, during a performance in or transmitted to that household for private home viewing, from an authorized copy of the motion picture"