We have xxxdto.com, the videos are downloaded in DRM. Yes, we have had problems where we've found downloads cracked and the video uploaded on a blog.
The videos also have a watermark throughout the videos entirety in the bottom right hand corner that shows "XXXDTO.COM."

So when someone does steal the video, we can track it right where it came from. And then find out what user(s) cracked that video by researching the download activity in our logs. And then we ban the customer from ever being able to download again. And of course, we fight to get the video removed from where ever it was placed.

But so far, out of 300 customers who bought token packages with us, only 1 video has ever been found. But still, I would rather see a 0:300 ratio instead of 1:300 ratio.

If in any event that our videos are stolen, does it become theft, or is it marketing? Obviously the person liked it enough to crack it, then share it.
When that happens yes we do fight it. But we also look at it in a second light... it's also advertising.

DRM is good, it is bad. I think it really comes down to how you are using DRM. If your controlling the video to only be viewed so many times, or if your running a PPM program, then DRM could be better. But as far as protection of the video its-self, it's never 100% secure. We use the DRM to primarily control where the video is viewed (ex. one PC to another, PC Sharing, blog uploading, etc.).

Just my thoughts, it's late here and I seen this, so I thought I would comment.