Interesting that it worked out for them, unlike what happened with music distribution, and then the Napster/iTunes/Spotify evolution. Probably helped that there was only extremely slow and expensive legitimate distribution channels and actual work was required to make the content accessible in other languages.
Rakuten's Viki service is another interesting model - they license content, then give people early access and crowdsource the translations, where the only benefit of translating is getting the $5-10 monthly service for free.