No, here you HAVE violated the conditions of the DVD. Fair use means watching it with your family (up to 5 people). 50,000 people is obviously distribution and is a violation of IP rights.
I am in trouble, my family has 7 in it. With extended family (sister, etc...) I have 20. Often more than 5 watch DVD's at my house. So IP has limited my right to how many friends that can watch a movie.
But Yet you state:
If I go over a friends house and he gives me a DVD, it is now mine. All right to the property have been transferred.
That's true, so long as he has actually not made a copy of it and that you now are watching a duplicate.
So instead of having everyone at the same time watch my DVD, I can give it to a friend, and them give it to another, and with just degrees of separation, almost everybody can watch the DVD.
So its not really that I can't have 50,000 people watch the DVD, I just can't have them watch it at the same time.
Hence, a DVD club where each buys 1 DVD then sends it on to another predetermined group member say after 2 days, would be OK.
In effect, rather than 50,000 people buying each and every DVD, they each buy 50,000 different DVD's and give it to their friends at predetermined intervals. Apparently there is nothing wrong with that. Why does something tell me if this occurred new laws would be written to prevent it.
Irrespective of any laws, when a "Black Market" exists, it is just the Free Market at work. Someone has overpriced or suppressed the availability of something many want. Is it wrong, who is to say. The Kennedy's got rich by bootlegging liquor, no one complains now about it.
Others are getting rich selling cigarettes in New York City because of the Price they put on Cigarettes there. When you can buy a carton duty free for $14 and sell them in NYC for $80, there will be a market, no matter what laws are written.
It is funny watching the clowns in the circus go round and round wondering why the system isn't working. They are not seeing the forest through the trees. It is working, just not they way they want it to work.