I’m guessing you are extremely young as that is not how digital purchases have historically worked. The concept of “you bought a license to use it” hasn’t been around long. Before that, you would be given an access code to go to a publisher’s website like Disney and download a copy of the content you purchased. It wasn’t tied to any licensing server or authentication system past that point, you just had a digital copy of your purchase.
Yeah, I remember the days of renting VCR players and acting like we didn’t already own one so we could play on one and record off the other. I think a lot of this is due to the rise in Internet infrastructure. 15 years ago streaming services wouldn’t have been doable. There was no licensing, just files to download. You’d even get Digital Download codes in your DVD case when buying a movie, so you had multiple copies. Really sad how things are consolidating.