We sure do! We've had server outages/maintenance, vacation travel with a self-imposed no-distracting-technology policy where we still wanted to do family movie nights, and of course as gifts. We also limit the children to our own library, but they do not have unfettered access at night, so if they want to watch something in their room to fall asleep to, they are allowed 1 or 2 discs at a time.

We've got philosophical/psychological issues with the unending smorgasbord of streaming services, so the children aren't allowed to use those alone for the most part. They have full access to our family library, but they often prefer the discs for some reason. (Our oldest has a DVD she watches frequently and refers to it as "retro".)

We've got external SSD drives with our favorites (since a few server-downtime left us wanting something more convenient—we keep most of our 3+ year old discs in a fireproof safe), but new stuff is often watched by the kids on disc.

And before you ask, no, the safe isn't "for the discs". It's just large enough to have plenty of room for them in CD cases, and that's a pretty reasonable backup in case of disaster. Not sure I understand why some of our friends happily show off $80,000 worth of Blu-rays or $100,000 worth of vinyl in their living rooms. I'd hate to have to recreate our collection, so why bother if we can easily protect it?