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Netflix: Piracy is Difficult to Compete Against and Growing Rapidly
(torrentfreak.com)
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That's just an engineering problem... Not a particularly hard one either
Wtf would you keep re-encoding it? If you don't, it's just binary. You can run error checks on it, save it on raid config with high redundancy, and it's more stable than any physical media
Load it into memory and you can copy it all you want, do error checking at the destination and you're golden.
The exception is if you keep uploading it to and ripping it from hosting sites which keep re-encoding/compressing it... But replication itself is easy