Originally Posted by FinancialWar
You do realize that Google also rent and sell movies on Google Play right? Wouldn't a smaller storage harm their movie business?
Selling content is more about locking you into their ecosystem than it is about making money directly from the actual selling of the content. It is also about changing the thinking from storing your entire library on the device to storing it in the cloud. You don't need large on device storage mediums if you can simply stream or download whatever it is you are currently watching.
To expand upon my conspiracy theory though it is probably in the interest of the MPAA encourage limiting storage options. It basically has the effect of encouraging people to legitimate sources for content rather than trying to store it on the device.