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They have content control, which is a slightly different thing - it simply says what you can do with material once it's been saved on the hard disk. And as long as it's protected from copying, then that's all that Freeview really cares about. So a PVR could, for instance, just encrypt everything with one of the standard well known encryption systems, using a key that's generated from some element of the hardware (like the drive serial number, say). And that will satisfy the content control requirements.
But full-on DRM, which is specified in Canvas, is capable of a lot more than that, managing things such as entitlement to view, which the FreeviewHD stuff doesn't cover. The latter is pretty much just a flag in the programme data that says "copy once/copy unrestricted."
With YouView/Canvas there's a common specification for the platform, so that all the suppliers of content can be confident that their service will be available on all the boxes. I'm not party to the specs, but it may require dedicated hardware to handle - not necessarily because that's the only way to do DRM/encryption, but because you may get better performance that way (imagine trying to soft-decrypt an HD stream in real time on a relatively slow processor; could get messy).
There are lots of different ways you could do pay TV stuff over Canvas, but I wouldn't be at all surprised if at least one of the supported methods for live stuff is, essentially, an IP version of the same way that broadcast pay TV happens now - a single encrypted stream that goes to all customers, with the receivers decrypting, based on entitlement information.
There are other ways, of course, but it would seem logical to support the way that channels are currently set up to do things, too, if only to ensure it's simple for them to bring their content to the platform.
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