[LeFantome]

I think it is fine for Open Source software to behave as you describe. It is much more difficult for a commercial service. Any kind is service would be borderline but charging money for it pushes it over the edge in my view.

At the very least, I think you would need two entities where one creates the software and other one hosts it. That way “the service” is hosting the software and not the specific features that the software provides.

Plex mixes both and so downloading the video files becomes part of the commercial service they are offering. Providing commercial access to somebody else’s copyright sounds illegal to me.