AES-128 is the standard cipher HLS uses to encrypt video segments, with the key fetched from a URL listed in the playlist. It stops casual downloading, but any client that can play the stream can fetch the key. Without protected key delivery, AES-128 is transport scrambling, not content protection.
AES-128 is the standard cipher HLS uses to encrypt video segments. The player fetches the decryption key from a URL listed in the m3u8 playlist and uses it to decrypt each segment as it plays.
When a stream is packaged with AES-128, each segment is encrypted with a 128-bit key. The playlist points to a key file; the player downloads the key, decrypts the segments, and plays them. This stops someone from simply right-clicking and saving a plain video file.
DRM closes the gap AES-128 leaves open: the key is delivered only to a protected Content Decryption Module, never to code the viewer can reach. For paid content, AES-128 is a lower rung on the protection ladder than DRM, useful as a deterrent but not a barrier against determined downloading.