That's indeed the most half-assed cultural festival project I have seen. Just stream a few movies from a commercial service and that's it. I don't believe you are even supposed to run the movies for a larger, random audience. You ought to need a totally different license for that.
A movie club obviously could do something like that if they haven't made their own movie. But even so it would be wiser to show short films. Even just Youtube has lots of short films that actually are worth a watch, but most people would never encounter them. If it's 10-30 minutes, it's more likely culture festival visitors would actually sit through it, rather than sit down for bloody two hours for a regular movie.