When the supposedly uncrackable copy protection used on DVD was indeed cracked back in 1999, two very different messages were received. Hackers and most tech enthusiasts took the crack as yet another sign that these encryption schemes will all, ultimately, fall to the efforts of hackers. The titans of the entertainment industry received another message—a challenge, as it were, to build an even more “robust” content protection system.
Ars has a nice summation of the state of HDCP/HDMI, and how we got there. A lot of this wasn’t news to me, but it’s put into perspective very nicely.