Before I start quoting, I will explain something called DRM for those who didn't hear about it.

DRM, or Digital Rights Managment, is a subsidary of Microsoft's Windows Media technologies. It allows content providers to issue signed certificates, or licenses, to clients (users like us). These licenses describe how we are allowed to watch the film, in many terms, more importantly how many times and for how long.

Microsoft has been pushing this thing. And you might have seen it recently in ATOM-Films' High Definition short films. Were you're allowed to playback a downloaded film for 2 weeks only, and then it will be automatically deleted.

Now, here we go with the news...
Microsoft Corp. and the Walt Disney Co. have announced a multiyear deal to work on better protecting media content, and for Disney to license the Windows Media Digital Rights Management (DRM) software. The deal is seen by some industry watchers as a wake-up call to Apple that a format war is under way, and that it must seriously consider licensing its DRM technology to stay competitive with Microsoft.
Apple Computer - one of Microsoft's biggest rivals in media technology - has been the recipient of the Disney/Pixar partnership until now by being the first to release movie trailers and other promotional material from Disney films. That relationship will come to an end, at least with Disney, in two years. It is not known if Disney will cease to release future content in Apple's QuickTime format, but industry watchers believe it is a safe bet Windows Media will be the exclusive format of future Disney releases.
For Apple, the alliance between Disney and Microsoft is not good news. Analysts believe the Disney/Microsoft pact as a clear signal that a format war in both the audio and video arenas is under way. The key, analysts believe, is that Apple must now form similar relationships with other content makers and also reconsider licensing its DRM technology, know as FairPlay, for use in both audio and video.
Building the technology is only half the story, however; companies like Microsoft must also forms alliances with content makers like Disney to insure its technology is being used and seen by the public. A similar deal to the Disney agreement was forged between Microsoft and Time Warner last May. Under that arrangement, which was part of a US$750 million settlement between Microsoft and Time Warner's America Online business, Time Warner agreed to work with Microsoft to promote the creation and distribution of digital content from its Warner Brothers film studio. In another example, five films were shown at the 2004 Sundance Film Festival in January using Microsoft's Windows Media 9 Series technology.
http://www.macobserver.com/article/2004/02/09.10.shtml