JimmyH:
I don't really think that there are significant DRM issues to be resolved. Surely it would be fairly trivial to encrypt movies recorded to an external USB drive, and lock them to the serial number of the box that recorded them as part of the encryption process so that they could only be played back on that box? The DRM is already circumventable(*) if someone wants to go to enough time and trouble, so providing they did it properly they shouldn't materially increase vulnerability.
* While I haven't tried it myself, but I understand that there are boxes that take sky cards and can record all programming (like the HDi box) to network accessible drives. Plus, HD recording solutions can trivially be constructed to take HDMI output with HDCP and record it. All of these are probably less hassle than bothering to crack a USB encryption scheme.
I just got a new panasonic V series plasma. It allows recording to an external USB drive and then playback. I haven't tried it, but the manual said the TV formats the ext HDD and that the content can only be played on that TV (and not another TV even if it has the same model number). So surely SKY could do the same?
