DRMs are wrong. Basing them on free software would not make them right.
"Normal" encryption allows two things: 1) it guarantees the identity of the
message you are receiving; 2) it prevents other people listener in the middle
to understand the message. It does not prevent you to do anything with the
message that is for you. It is not DRM. In particular, a user can receive a
movie from an encrypted channel and then share it, unencrypted. And that is
good! People should never be prevented from sharing! That is the basis of any
community. Of a civilization at the largest scale.
Free software DRM is an oxymoron. DRMs can only be implemented in proprietary
software that, by definition denies freedom 0 (to use the software as you
wish). It also necessarily denies the access to the source code (hence,
freedoms 1 and 3) because DRMs rely on secrets in the source code that the
proprietary software developers and Hollywood have agreed upon against the
users. It is a real conspiracy!
There is no comprise to be found. DRMs should not exist. Period.
Video formats and patents strictly have nothing to do with DRMs. Please, do
not confuse completely unrelated topics.