In an exemplary embodiment, digital content is mastered as a combination of encrypted data and data processing operations that enable use in approved playback environments. Player devices having a processing environment compatible with the content's data processing operations are able to decrypt and play the content. Players can also provide content with basic functions, such as loading data from media, performing network communications, determining playback environment configuration, controlling decryption/playback, and/or performing cryptographic operations using the player's keys. These functions allow the content to implement and enforce its own security policies. If pirates compromise individual players or content titles, new content can be mastered with new security features that block the old attacks. A selective decryption capability can also be provided, enabling on-the-fly watermark insertion so that attacks can be traced back to a particular player. Features to enable migration from legacy formats are also provided.