Abstract: A method and apparatus for protecting digital content. A secure digital appliance is disclosed for receiving communications coupled over a communication network. A private key of a private key and public key pair is stored in the secure digital appliance in such a way that the stored private key cannot be obtained by tampering with the secure digital appliance. Upon receipt of a session initiation message that is encrypted using the public key (of the private key and public key pair) the secure digital appliance decrypts the session initiation message using the stored private key to obtain a session key. The session key is then used to decrypt communications that include encrypted digital content. The secure digital appliance includes a local output device (e.g., a TV screen and/or speakers) that is operable to provide protected output of the digital content. The secure digital appliance does not contain any provision for output other than the protected output of digital content.