I was told by several elders that a CO went through the circuit and told the elders that any found watching R-rated movies could be removed as elders.
Brothers in "positions" i.e. MS, elder or pioneer would be privately counseled for watching R-rated movies and removed if not showing the proper attitude and repentance.
R-rated movies were not allowed at Bethel and that was the basic philosphy in the congregation. Banned at Bethel, banned at the hall.
It was harder to counsel non-appointed brothers...nothing they could really threaten to take away, so they used talks to demonize the movies, trying to get everyone on board with avoiding R-rate movies. But they could be counseled about "hating what is bad" and how it will keep Jehovah's spirit away.
Back when I was in, a friend of mine, on the cusp of being recommended/appointed as an MS was counseled. His wife rented some movies, one of which was R-rated. He didn't watch, it just happened to be in his house. Another JW spotted it and instead of applying Matthew whatever,about going to your brother to lay bare his fault, went running to the elders and reported what they saw. He had two elders give him a good little "what for" talk. He denied it, not even knowing his wife had rented the movie, but the elders took the word of the snitch over his.