Yes, they got a refund because they wasted their time to get nothing. Absolutely nothing. They actually were at a loss because they wasted time and got nothing but frustration for it. So yeah, I don't see a reason why they are not entitled to it.

What does the time and effort required matter in anyway in this case? If something is copied, it is copied. They can't lose something they didn't have. If I could clone a car and then I took that cloned car is it still the same as stealing the original car? No, if a friend cloned me their car I don't see how you could even come close to saying it was the same as stealing the car.

Are they entitled to the entertainment? Sure, why not? If they tried to get it already why not. Not to mention in this day in age there is a lot more social pressure to be up to date with current hit tv shows and movies. And sure, you could be "that guy" who doesn't watch these things, but most don't want to be in that group.

So yes, if they tried to get it legally, and the legal system failed and wasted their time, I do see them entitled to try another avenue even if it may not be legal. I would not say the same about a physical item.