Have you tried to get a refund? This kind of remotely downgrading a physical purchase is an outrage.

Not yet. Apparently Philips (TP Vision actually) is working on resolving the issue. If they can’t fix it I will definitely go back to the store (Dutch law makes them responsible for any defects) and try to get some kind of refund.

Be sure to report the defect. Even if you already know they're working on a solution, which you can acknowledge (or ask them to confirm) in your message, you need to make it clear that you observed a defect with the bought product without undue delay for warranty to apply to you. (More info at Consuwijzer.nl, the website from the autoriteit consument & markt .)

Since I had some trouble with a certain model airplane store in den bosch, I know a thing or two about Dutch warranty law (and a bit about how it relates to European law; the Dutch one is more broad). Was a huge pain and cost me a ton of time and I didn't really have anyone who already knew the law or was willing to dive into it to double check my work (juridisch loket was also fairly unhelpful). Feel free, you or anyone, to shoot me an email if you have further or other questions on the topic.

From what I read, the decryption is done in software. It might be interesting if they send an over the air update to fix this.