A consortium of movie studios and technology companies backing the encryption system for high-definition DVDs on Thursday confirmed that hackers have stolen "title keys" and used them to decrypt high-definition DVDs through flaws in DVD player software.
Both the title keys and a number of decrypted films have been posted on peer-to-peer Web sites for downloading and copying, a spokesman for the Advanced Access Content System (AACS) Licensing Authority said.
The large size of the files and the high cost of writable hi-def discs make large-scale copying of high-definition DVDs impractical, but the attacks on the new format echo the early days of illegal trafficking in music files, AACS spokesman Michael Ayers said on Thursday.
"We want to make sure we address this now. It has a potentially limited impact now but some sobering possibilities," Ayers said.
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In other words they are pretty much screwed for the next 5 years of this optical format. It hackable and transferable over the internet. In my opinion with this news they should just openly remove the protection.