Serious question: who buys digital movies? I don't really know anyone who even buys movies at all anymore, but if they do it's likely they prefer a physical copy anyway. There's just so much content out there that the number of people that even care to rewatch a movie they've seen feels like it's really low.
As to why people who buy prefer to buy physical? Because there's actual ownership. I haven't even as much as investigated my options for buying 4K content, because I am 100% sure it doesn't exist in a form that's not hooked into some DRM system (AKA worse than useless). With physical content, at least you retain the control.
To an extent, yes. Practically, you have control. Legally, you have still purchased a licence to view that content on that media in limited scenarios.
You can't (legally) copy it, or display it in public (for free or money).
I'm the sort of person that like to rewatch things. As a kid I rewatched Star Wars so many times that I knew the lines in the entire movie by heart, these days the Big Lebowski is comfort food that I'll throw on when I'm bored. So the "rent" option on iTunes never made sense to me. And my concern with something like Netflix is--will it be there when I want to rewatch it?
If Apple ever gets out of the game I hope they give an out for people who have bought things, but I'm not optimistic. I'm less worried about them pulling content they lost a license to because I hope that licensing for purchase is a different world than licensing for free streaming.
(Also, remember that this is exactly the same for app stores. I did have an app pulled that I paid for. So it does happen, I'm just hopeful that it doesn't very often.)
EDIT: I just looked and I own two copies of David Lynch's "Lost Highway" (a mistake since I already owned it, and later saw it on sale and bought it without checking my list. It had changed hands and was being sold by a different distributor.) I searched for it on a non-logged-in computer and its not available to purchase at all. While this is a guarantee of nothing, it suggests that Apple's licensing with the movie rights owners may retain rights beyond the termination of the license.
I also haven't noticed any missing or anything, but my understanding when I click the "buy" is I'm not buying to OWN the content like I'd expect with a DVD/VHS, but buying the right to watch it as long as the content is available as many times and whenever I want.
I personally think people are clinging too much onto the description of "buying" that comes with physical goods, not digital goods.
I buy digital films occasionally, only the ones that I know I’ll want to re-watch every year or two. It’s a much nicer experience to call one up on a whim than it is to find out which (if any) streaming service currently has them, sign up, then cancel. That’s worth the $10 or $15 I paid, especially considering that the wine consumed during each viewing matches or exceeds the same cost, depending on how many folks I’m watching them with.
I have a Mac mini that exists almost exclusively to be the backup for all my digital content should I ever need it. All the movies are downloaded to a 14TB external drive which is then cloned to another 16TB external drive and also fully backed up to Backblaze.
Thanks
Note that this doesn't remove the DRM or anything like that. This is simply storing a local copy of the iTunes-protected video on your Mac. But if the movie isn't available to stream anymore or your internet is down, you can use Home Sharing on the AppleTV to connect to your Mac and stream the downloaded version.
Same reason that when I go to rent from RedBox and they offer the rental for $1 and let me keep the DVD for $2 or whatever I'll just buy.
It's much more likely that my entire Amazon/Apple/Whatever account gets banned for something than they revoke access to more than a small subset of the movies, so for me the risk is worth the reward.
It's also cheaper if you have a family and don't intend to watch it together at once, or even in a single day. It's also more flexible regarding which device can play the movie (iTunes rentals were bound to the device clicking the play button lady time I tried)
It's way more niche than a few decades ago, but there's a bunch of cases where buying is a better choice.
No, there's always another option: not watching the movie.
At the very least, I know it'll be a good movie instead of taking a gamble with an unknown quantity.