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I didn't meant to say no-one saw it theatrically but I probably did undersell it there.
The DVD was such a huge seller and coincided with the format really catching on. The Matrix was the "must have" DVD to show off the format and for many was likely one of the first DVDs they ever purchased.
It was also the go-to movie to show off DivX rips.
The popularity of The Matrix is closely linked with a surge in DVD popularity. IIRC DVD player prices became more affordable right around 2000 which opened it up to more people.
Also since the service does not store your private key, it is more resistant to data-breaches as that is one less potential breach source.