This is a terms of service violation at best. There's no theft, nor even copyright infringement. The obvious parallel is Sony Corp. of America v. Universal Cit

This is a terms of service violation at best. There's no theft, nor even copyright infringement. The obvious parallel is Sony Corp. of America v. Universal City Studios which established that time shifting - recording a TV broadcast to play back later - is fair use. Someone using a DVR with a "+30 seconds" button to skip an ad was not stealing from the broadcast company.