No...... this won't backfire at all....
Meh, your average Joe will probably just blame Netflix / RedBox.
why are we talking about piracy? this is just a way to try and get people to buy the dvds because the redbox and netflix wait will be longer. I don't think it will have much of an impact on pirating. gonna hurt netflix for sure, which is the point
For those who don't want to wait pirated copies will be available immediately just like usual.
Movie sales are down in the last 7 years because fewer and fewer good movies are coming out. Seriously, there's only a handful that I've said "I probably will want to watch this more than once, so I'll buy it". And most of those have been bargain bin purchases.