Anyone who sells, acquires, copies or distributes copyrighted materials without permission is violating the law.

The internet is very transforming in the way people watch movies. 5 years back, you would have to download content and watch it since streaming was not a possibility because of your connection. But now, with higher last mile bandwidth, streaming HD is even possible. That doesnt mean streaming copyrighted material is legal, and downloading is illegal. Both are subject to wiretaps and when they decide to come to you, they look for proofs. They will already have enough from your service provider and their wiretaps. However they might check your devices too. For downloaded materials, they might check your hard drives. Deleted files are still marked as deleted on your hard drive. Not completely wiped away. Remember, streaming leaves traces on your computers too. It will download the content and buffer it while playing. Technically unless you really know how to wipe it off completely, you might be in trouble denying that you acquired it.

I am not scaring you or anything. This is a very broad issue and many people stream content legally/illegaly or without knowing. However, there is always a possibility you might get caught and fined if you keep your activities to high.

There are many movies that are legally viewable from many streaming websites. Netflix has an awesome collection, so does Hulu/Youtube and other websites that stream legal content. Or just pay few dollars now to save yourself a lifetime saving later.