webax writes with this excerpt from Reuters:
"[An Adobe security hole] exposes online video content to the rampant piracy that plagued the music industry during the Napster era and is undermining efforts by retailers, movie studios and television networks to cash in on a huge Web audience. 'It's a fundamental flaw in the Adobe design. This was designed stupidly,' said Bruce Schneier ... The flaw rests in Adobe's Flash video servers that are connected to the company's players installed in nearly all of the world's Web-connected computers. The software doesn't encrypt online content, but only orders sent to a video player such as start and stop play. To boost download speeds, Adobe dropped a stringent security feature that protects the connection between the Adobe software and its players."
webax also notes that the article suggests DRM as a potential solution to the problem.