Oh dear.
This runs on regular hardware? There's a reason this hasn't been done before: It'll be cracked within about five minutes of release.
So they've managed to code some license system that runs within the standard DVD VTS (how, I do not know), this will be very easy to reverse engineer (if it's even possible) so you'll see keygens popping up online quite quickly.
As another commenter also mentioned, there's no way they've been able to encrypt the content, so you can just watch it on a computer anyway.
There's a reason a lot of time and money has been spent on developing hardware DRM, you just can't secure the standard setup in the way the distributors want.
In the end though, most non-techie people will purchase these things legitimately, and it is a great idea, so bring it on.