In a world where no DRM is sacred - HD DVD was first to fall to Muslix64 and the BackupHDDVD utility. Now, only a month later it’s Blu-ray with the new utility BackupBluray - available on Usenet and Torrents everywhere.

They said the AACS encryption protecting movies on HD DVD and Blu-ray was “dynamic” making it nearly un-hackable. They also said Blu-ray was to be protected by an extra layer of encryption called BD+. Well, the hackers have won a quick victory.

BD+ was supposed to be an extra layer of encryption to prevent hackers from backing up BD spec movies. This extra layer was mandated by Fox Studios, promised by Blu-ray to woo Fox over to its format. According to Ceasar at Arstechnica Blu-ray can update the BD+ encryption scheme for new movie discs. It will remain to be seen how this pans out in the future.

But what’s the current status of BD+, is the format even complete? It’s being stated by reliable sources that the BD+ encryption was never completed. That means current Blu-ray titles are only protected by AACS encryption. If I can download X-Men 3 on Blu-ray, boy is Fox going to be mad!

So, what now? If the AACS encryption is truly dynamic can they change the keys so that future films will no longer be hacked? Can they do this change without needing to update or replace existing Blu-ray hardware? Will all this sticky Blu-ray encryption stuff make you more likely to buy into HD DVD? Or will you just download back ups?