Ain't nothing wrong with giving someone something you got for free. The point isn't arbitrarily spending a certain amount, it's showing someone that you care about them by being thoughtful and providing them with something that you think they will like. I'm actually giving a couple people things I got for free or almost free this year.
That being said, don't give it if you're not sure if they can play it, or if you're not sure it's a DVD they would actually want. If it meets both of those criteria, gift away. If it doesn't meet those criteria and you still want to get rid of it, toss it to charity or a hospital or something.