criterionforum.org

Fox is going to start offering day-and-date downloading this fall. I'm sure it's just for the popular releases that they think the MySpace kids will pay full MSRP of the DVD for, and it will feature Microsoft's DRM which means you can't play them on your iPod or PSP or (possibly) burn a DVD. Just what everyone wants: a movie that costs more than a DVD but provides many fewer options for viewing.

So, to the two people who will actually use this product/service: Enjoy, suckers!

Source

Gotta love Fox's approach after losing touch with their customer base who have clearly demonstrated a desire for a certain level of additional functionality: prevent this and charge more for the priviledge.

If it uses Microsoft's DRM then yeah it will be copy protected, you have to be connected to the net and acquire a license to even watch the film. It is crackable, but not as easy as a typical crack, and only if you have a genuine license to begin with, can you crack it and copy it.