But they might want to watch a video of their kids' school play or some other video not from a big studio.

Do people actually ever watch those videos though? People love to record events and then it collects dust afterwards.

My family definitely rewatches videos all the time. As they grow, my kids become new people every year or so; I like the chance to at least briefly visit every one of the people they have been.

The publisher needs to be able to edit the disc the first time. If that part is expensive in time and money, small publishers aren't going to pick up the format.