Re: The Rest of the Story
"2. Transparent caching of Netflix content would be easy to achieve without compromising the content creators' intellectual property. All that is necessary is for the content to be encrypted, with the key sent to the player via a separate secure channel. Then, the cache itself could not be used for piracy. The player, of course, still could -- but this would be true with or without caching."
Hollywood does not believe this to be secure. Even if the content is encrypted with a common key, in order for the content to be transcypted to the subscriber's key, the key must be delivered to the machine at some point. The fear of Hollywood is that someone (an insider, a hacker) can intercept the key inside the machine at some point, because it has to be decrypted at that specific point, allowing for man-in-the-middle piracy. For them, nothing less than end-to-end encryption will suffice, because if the stuff is pirated at the source, the law can concentrate on Netflix, while if it happens at the receiving end, they know where to look as well. This becomes a lot harder with a man in the middle.