I'm sure the actual movies are decent enough, but as an app there's hardly any functionality and it does look like it violates Apple's policy.
This has nothing to do with 'digital colonisation' and everything with rejecting shitty money-grab made-in-an-afternoon apps.
All we have is "Apple [..] expect[s] apps to provide a really great user experience" vs this low-res screenshot of some video or animation (can't even tell which and there is no UI visible) http://www.abc.net.au/news/2016-11-17/a-screenshot-of-the-in...
As you said, if the app part is starting a video that could just as well be on youtube, there is no use in it. If it has a decent interface to discover different videos, it can make sense. But we can't know based on the spare facts we have and for this I blame that company, not apple. Even on their website there is not a single screenshot showing the app...
edit: so they mapped a video on to a business card with unity... http://www.indigital.net.au/single-post/2016/11/09/Indigital...
At this point we're limited to whatever Apple can imagine is useful. Long term this will stifle innovation.