transformation of sentence

Yes, but with some notes.

I hope this helps, and I should warn I am no expert, but I do like to study english rules. It would make sense to say:

Susan prefers watching a legitimate movie more than watching a pirated DVD at home. (or)

Susan prefers watching a legitimate movie more than a pirated DVD at home.

Either make sense, but I wanted to add that you really want to include something before ‘movie’, like legitimate or legal, because you are comparing it to a ‘pirated’ movie/DVD. You’d also want to include ‘more than’ instead of just saying “than” for it to really flow well. There are other options but without adding those in it doesn’t flow well in my opinion.

One prefers one thing to (or over) another (one) thing. Not "than". Total of two things. If you mean that Susan would rather watch a film in a cinema than a DVD at home, then that is a simple either/or thing. However, you have also dragged in the concept of copyright piracy. There are now three issues fighting it out: Cinema, copyright DVD at home, pirated DVD at home. This makes for a clumsy sentence.

Susan prefers watching a film in the cinema to (or over) [watching] a DVD at home.

The second "watching" is optional and it is preferable to omit it, to avoid repetition.

However, one may like one thing rather than another. Susan likes to pay for her entertainment rather than break copyright law by obtaining pirated material.