Bluray discs can contain Java software with access to a full TCP/IP stack. Netflix used to send out Blurays containing an app to use their streaming service on

Bluray discs can contain Java software with access to a full TCP/IP stack. Netflix used to send out Blurays containing an app to use their streaming service on the PS3, and it worked in most internet-connected set-top Bluray players. My guess is they're having the user run the app on the bluray, give some kind of ID credentials associated with the session in the iPad app, and once they are paired, they have the bluray app play the movie, and for as long as they are paired, intermittently send its state (position and playing status) to their server, which in turn passes it on to the iPad app, which responds accordingly.