Abstract: A distributing system includes an encoder, a perceptual encryption module and a server. The encoder encodes the file of high quality video as encoded data in MP3 format. The encoded file has a plurality of frames. Each frame has a header with a sync and side information and main information. The perceptual encryption module perceptually encrypts the encoded data in MP3 format to generate restricted video data as perceptually encrypted encoded data. The server with a memory bank stores and distributes the perceptually encrypted encoded data. A receiving system receiving system includes a receiver with a memory bank, a perceptual decryption module and a decoder. The receiver receives and stores the perceptually encrypted encoded data. The perceptual decryption module perceptually decrypts the perceptually encrypted encoded data to generate encoded data in MP3 format. The decoder decodes the file of encoded data in MP3 format to generate high quality video.