>>908638 (OP)
Well lets see...
You'd need a computer of some sort (Any kind of RPi device should suffice, or some cheap x86 off ebay)
A touch screen (chinese resistive crap should be cheap)
A HD to store all the movies on (Maybe SSD since you want fast read and won't be writing much at all)
And a USB hub and cables.
And of course the chassi (could be 3D printed I guess?)
The OS could obviously be something Linux, possibly: http://porteus-kiosk.org/
You might also need to write a few scripts or programs to deal with the whole "Quick format USB, write selected files to device when user completes selection".
You'd also need a way to connect to it, either by utilizing the USBs on the front (or possibly bluetooth) to hook up a keyboard, log into maintenance mode and transfer new movies from a portable HD, alternatively using SSH over some kind of prepaid 3G plan, tho you'd still have to hook up the USB unless you wanna transfer the files over 3G. Another alternative could be using prepaid 3G as emergency connectivity, while the primary means of connecting and transfering files happens over hacked or open WIFI.
Now the problems mostly ends here unless you want to add any kind of payment system.
Taking bitcoin donations, alternatively some kind of local bitcoin payment could work, though the latter risks making it a target for hacks in order to access the local bitcoin wallet.
But if you want to delve into piracy e-commerce you will definitely need the thing to be hooked up to the internet, and definitely be doing payments via some website and third party payment processor in like... china or russia or something, otherwise the FBI will be all over you in 5 minutes flat.