Adobe are looking into DRM features at the moment, and I assume it would 
be as you suggested. Encoding keyframes as they are being streamed out 
and decoding on the player end, or files are packaged up with encoded 
bits at keyframes and the flash player can decode them. I say to hell 
with DRM but blocking annoying stream rippers would be a +.

Mikko Rantalainen wrote:
> Nick wrote:
>
>   
>> After some hours of testing we tryed to rip the "DRM Video" from 
>> Onlinelib ACP - Advanced or Anti Copy Protection
>> (what a stupid name,hehe) and here the reply media catcher doenst works.
>>
>> There was no chance to save onlinelib DRM Demo from:
>> http://www.onlinelib.de/vcsdemos/drmdemo1/drmPlayer1.html
>>
>> It seems that here is more as a "marketing air bubble" behind ACP from 
>> onlinelib.
>>
>> Does anyone knows how they protect their Videos for ripping?!
>>     
>
> Without inspecting the traffic in any way I guess they could be using a
> technique similar to one used in encrypted DVB streams. If I've
> understood correctly, encrypted DVB stream is mostly without encryption.
> The only part that is encrypted is some pieces of every keyframe - just
> enough to break decoding of the whole stream.
>
> Perhaps flash player can download a partially corrupted (broken keyframe
> data) FLV from the server, download encrypted patch for broken FLV file
> from DRM-server, decrypt the patch and apply patch to the FLV on the fly
> before decoding the video?
>
>   


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