You do still have to pay the licence if you own a TV but don't even have it tuned in and just watch DVDs, the fact the equipment is capable of picking up a live broadcast is enough.
That TV Licensing FAQ snoopstah linked, which appears to be official, specifically says that you're wrong:
Quote:
You do not need a TV Licence if you only use your TV to watch videos and DVDs or as a monitor for your games console.
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