Yep. IIRC at the time Sony said something to the effect that they were willing to lose $4B in the short term to ensure that Blu-ray won the format war.
I'm wondering if perhaps Sony won a Pyrrhic victory here.
Legality aside, I'm a member of a private movie tracker. High quality 1080p rips come in at ~12GBs or more for ~1h45m of content. I have an 80Mb connection, and it still takes me about 30-35 minutes to complete the download.
1080p, let alone 4k, downloads are years away for the average consumer. What are they getting these days, 20Mb + download caps? So sure, fiber only, but my god it's a long way off.
(To be less abstract: they probably made back the money already. Everything else is gravy.)