Commonly, the apple ipad Mini is fine for watching films (as well as doing pretty much everything else). The processing power is about the same as the iPad 4, so there is no genuine difficulty there also the playback is generally as easy just as one android's bottom (Star Trek gag).
The only real concern with the iPad Mini is the lack of a 'Retina Display', the stunning screen tech featured on apple ipad 3 - 4, iPod Touch (4th - 5th Gen) and iPhone 4 - 5 (amongst the rest). The iPad Mini does suffer somewhat from the deficit of a Retina Display, however it's not really a crisis.
There is, obviously, the matter of that 16GB apple ipad Mini struggling to store information, however, but that's typically common sense
Gareth Beavis, in the authorized 'TechRadar.com' review of the Apple ipad mini, understood:
"The iPad mini suffers from the same thing that all the other iPads do: namely that the 16GB version, which is the poster child of the new cut-size range, is too small to really pack with the movies and apps that you want".
He then went on to speak the iPad Mini's scarcity of file compatibility. This is, as far as I am concerned, the Ipad mini's major downside as a media device.
"There's the other issue here: the lack of file compatibility. The iPad mini will play .mp4 files fairly easily, but if you fancy chucking on a DivX or AVI option then that's out of the question. There are third party applications you can use, but these can be extremely buggy and cost extra to put on your tablet But that's the griping out of the way - as a video player, the iPad mini is excellent. It's just the right size and weight to hold two-handed in landscape mode, and if you're OK with it not feeling as secure in one hand, a decent heft to hold with a single set of digits".
I believe that Beavis offers a fairly good rundown of the pros and cons.
Elsewhere, the Head of Technology at the Daily Telegraph, Shane Richmond, addressed the 7 inch screen size in his appraisal, when he wrote,
"In practice the smaller screen size is not much of a problem and it is because of that 0.9-inches, which gives 35 per cent more screen area than the Nexus 7 or Kindle Fire HD".
Additionally, the 7 size actually makes the apple ipad Mini more comfortable to hold when watching a film; the device really uses its petite stature for a bonus. Moreover, the display continues to be more than adequate. Devindra Hardawar, of 'Venture Beat.com', wrote,
"Movies and games don't look as sharp as they do on Retina Display-equipped iPads, but it's a more than worthy tradeoff. It takes a discerning eye to notice the benefits of Apple's Retina Display, but anyone can immediately recognize how much more convenient the iPad mini is. (And naturally, that's a problem that will be fixed in future models when Apple brings Retina Display quality to the iPad Mini.)"
All things considered, the iPad Mini is ok for viewing movies, but I myself advise you opt for the tablet with extra storage space (and also that you keep in perspective the file type restrictions of the apple ipad Mini).