The ownership transfer of the media is crucial. If I just give you access to my Plex, and you watch a movie that I own, that’s theft. If you have your own Plex, and watch a movie that you own the physical media of, that’s legal.

All I’m doing is hosting and storing the physical media you own and the digital copy of that. Only you can access it. Only you can stream it. It’s still yours.

And when you want to watch something else, you trade that physical media for someone else’s physical media. A one-for-one swap. Now you can stream the new physical media you own.