[sqeaky]

Watching a movie does not "consume" it.

In the economic sense consumption means a resource is used and cannot readily be re-used at its original quality. Copying a file does not deprive anybody of anything, I cannot even see a reasonable argument when the case involves a market where the good is not even offered for sale.

[khedoros1]

I'm pretty sure that they meant "consume" as in "watch", not "consume" as in "make unavailable for further use". So, watching a movie doesn't consume it, but one does consume movies.