A home entertainment system that employs DRM (Data Rights Management) data protected multimedia programs and rights management component (RMC), with corresponding hardware and software systems incorporated in to home entertainment systems, to protect rights of the media program providers and the users. The system employs STB (Set Top Box) as a hub. The rights management component is incorporated in to the set top box (STB Circuitry), as well as some of the media devices. Three operational scenarios are envisaged regarding the home entertainment system. The first operational scenario involves a remote media source and the media device interaction via STB Circuitry; where as the STB Circuitry performs the duty of a mediator. The second operational scenario involves remote media source and the media device interaction via STB Circuitry, where as the STB Circuitry having rights to reissue licenses to media players. The third operational scenario involves local media sources incorporating the RMC and interacting with the STB Circuitry to decrypt and transcode the multimedia programs. Further, the STB Circuitry interacts with a remote billing server via the communication network regarding presentation rights, to interact with a user regarding the presentation rights, and to arrange for payment for the presentation rights.