The files are encrypted, but obviously the hardware to decrypt them is right there. Now I understand those DRM systems have advanced intrusion detection and whatnot, but still it'd be quite a good start to make off with all their hardware.

The hardware is useless, you need a key from the studio.

But at some point during the day, the key has to be loaded somewhere in order to decrypt and play.

Although it might be only in protected memory and must be requested online during playback. Maybe even uses multiple keys during playback.