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I think an encryption-based system, as with certain high-end software packages, will prevail. The keys to all your purchased content could be stored on a dongle. The dongle could be placed into any device, and thus provide access to your content on that device. This could even work for rented or temporary devices. You store your library on a server, and access it with any device, as long as you have your dongle with you.
This system would impose no restrictions on where you store your content, or how many copies you make.
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