Even on sites protected by strong DRM, there is still the fear that somehow encryption can be cracked and their content will become free for all.

This is understandable, given the massive black economy in pirated films and TV shows.

There are a few approaches to this problem.
-only go with the most heavily copy protected sites, for example, Telstra Big Pond movie downloads, where losses to piracy is the province of heavy duty hackers. Trouble is, these are currently the hardest sites to get listed on.
- accept that piracy is a cost of doing business on the Internet, much like supermarkets factoring in shoplifting. I have heard that some of the big players in online distribution factor something like 30% piracy into their business models.
-give your content away, but monetise other commodities and services around it.

A couple of encouraging bits of news.

Reports from Sweden suggest that there could be a shift away from piracy in the music business (which tends to be the canary in the coalmine for online distribution generally).

Swedish music sales rose 18 percent in the first nine months of the year, after seven years of consecutive decline, following the introduction the anti-piracy laws. Of that increase, nine percent comes from a rise in physical sales, while a whopping 80 percent is attributed to digital revenue. This in a country that elected a member of the Pirate Party to the EU Parliament!

In Holland, the final nail was put into the coffin of Mininova, one of the biggest movie file sharing sites. The courts ruled that links to all copyrighted material had to be taken down, despite arguments from the owners that they were only providing a service, not encouraging piracy.

Put this together with anecdotal reports that Gen Y, who were brought up on piracy, seem to be moving back to legitimate purchases.

What this means to you.

Proselytising from the antipiracy movement can sound a bit like King Canute. But if there is a change in consumer sentiment, founded on morality combined with a simple and cheap alternative to piracy, a new era in paid web content could be coming. If you can't wait, use a monetisation strategy that factors in free downloads.