And presumably there will be other vendors offering other narrow selections, only on their own or "partner company" devices or DRM-ware. This sort of thing makes sense if you already have the device or service, otherwise it just prices the video files beyond any reasonable market value.
And piracy will continue as long as this "jump thru hoops" mentality goes on: compared to the hassle-laden commercial experience, pirating is convenient, and files are high quality, free from junk, and play on VLC.
The copyright holding companies will probably die off before they realize that they could have done better just selling files. They're convinced that only a few would buy and they would put them on torrents - but if I paid a dollar an episode of a series, with no DRM, trailers, ads or other BS, I wouldn't bother sharing, I'd just refer people to the same source to buy their own copies.