You can add to the story the DVD itself, before the DVD appeared Microsoft working with AACS created the MPEG4 (nothing to do with MPG or MP3, they only registered this name so the newer version of MP3 could not be called MP4!!!!). MP4 was something supposed to be used in the DVD movies, with all the copyright protection included.
What happened with the DVD?, it use MPEG2, that is a free and Open Source format, Microsoft's MPEG4 was cracked and also overcommend by the superior free DIVX (today not so free) or the still free and Open Source XVID.

Stupidity also evolves!