Yeah but it would be way cheeper to pirate a copy uploaded by someone who rented it and cracked the DRM.
Sure. On the other hand I have a fairly large number of friends that like to see new movies in groups, and often go to the theater together. I just don't care to go to the theater much anymore but I do occasionally host movie nights with the projector and surround sound system anyway, so if this service allows us to pause or to rewind or to otherwise replay then it could be very advantageous. We could do our own movie dinner theatre for a fraction of the cost of going out to the movies, could pause the movie if someone needs more food or to use the bathroom or something, and can do this with high quality while the movie is still essentially new. Could even take this a step further, and do a marathon of the previous films in the series culminating in the new release at the end.
For this to work it has to be priced right and the movie has to come out soon enough. $50 might be too high, and seventeen days might be too long, we'll just have to see though.