Or let's just say that the friend is a film maker, or a recording engineer, or an astronomer, or just about any other kind of person for whom storing multiple terabytes of irreplaceable data is just another day at the office.
And compressing a full length movie into 700 megabytes? What a horrible thing to do to it. While I appreciate your attempt to use MPAA math to compute the value of that hypothetical collection, it would be more realistic to assign a full DVD or Blurry disk to each one instead of squeezing them onto CD-Rs. At 25GB per title, 20TB would be completely filled by only 800 of them, which is a completely different story.