A DRM license server issues the licenses that let an authorized device decrypt protected video. It authenticates each playback request, checks entitlement, and returns the content key wrapped for the device's Content Decryption Module, along with policy such as expiry, resolution caps, and offline rights.
A DRM license server is the backend that issues licenses allowing an authorized device to decrypt protected video. It is the gatekeeper that turns an encrypted stream into playable content for the right viewer.
When a device begins playback, its Content Decryption Module sends a license request. The license server verifies the request, checks entitlement (often via a token or OTP from your backend), and returns the content key wrapped so only that device's CDM can use it. The license also carries policy: expiry, maximum resolution per security level, offline permissions, and output-protection requirements.
Most businesses use a hosted DRM provider that operates the license servers for all three DRMs, exposing simple token-based playback rather than requiring an in-house license infrastructure.