Is the DVD quality supposed to be horrible?

I just ordered this DVD from Netflix, and it looks like a bootleg video. It looks like someone held up a video camera to record a TV playing the movie. The disk looks authentic in terms of the printed label, yet I'm still suspicious that a studio would release a movie in this condition. It's so blurry I often can't tell what's happening.

Can anyone who has also seen this on DVD confirm whether the quality is supposed to be so poor?

__ __ __
Gentlemen, you can't fight in here! This is the War Room!"--Pres. Merkin Muffley