Loaning a copy to a friend, which is what your example basically is, should also be protected by consumer laws.
Surely you can understand that freely "loaning" digital copies - with none of the friction involved in physical media transport - would de-incentivize purchasing by others.
If you want that, fine. But that will jack up the price of movies, since a lot fewer of them will be sold.
I don’t see why the same couldn’t be done for other forms of media. Movies, albums, maybe even software licenses.
This system will likely result in a fairly minor decline in VOD revenue due to fewer individuals purchasing their own digital copy because they are once again able to loan works to others and take advantage of the same sharing of works that was taken for granted with physical media. If someone borrows a friends license to a movie to watch it once instead of being forced by the studios to buy or rent their own copy then there will be some lost revenue but I think that revenue only existed in the first place because of the walled garden scheme of owning nothing that exists right now. I also think if VOD licenses actually had value and guaranteed longevity they would be more appealing to consumers.
I'm not a fan of the walled gardens of streaming and the you-own-nothing credo that goes with it. I'm just saying that we need to be fair to all sides with the solution.
Sharing credentials on streaming services has happened exactly because it is the most seamless way to do it.
Interesting observation! Digital-only copies traded in a form not comprising the embodiment in a physical "vessel" allow for a theoretically efficient handshake-and-exchange process, but in practice, there's lots of friction involved.
Grievance: "Hey, you can't do that! It's too easy!"
Response: "Easy? Have you ever used an app with a 10-foot UI that's controlled by a TV remote?"
See also: <https://xkcd.com/949/> ("File Transfer").