I can't say I've watched any movies pirated that way, but I do know its rather novelty out here to be able to go downtown LA shopping and pick up dvds that are out in theatres or unreleased even.
Unreleased dvds make great holiday gifts.
But yeah the quality is no doubt crap and anyone that wants to appreciate a good film would buy the real dvd as well. At least that is what I would do.
I need to get downtown myself and do some holiday shopping too.... LOTR dvds and gucci for everyone hahaha
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