Sure, setting aside notions of common sense and accountability to the public a western government could hypothetically impose the equivalent (inverse?) of the EURion constellation on all digital displays. Of course you'd also need to patch the hole of authorized devices (ex laptops) running FOSS video players playing back pirated streams. Which is to say that it doesn't actually solve the "problem" unless it turns into a full blown war on general purpose computing.

But wait! Even that's not good enough because my (now illicit) pirate box can present the stream embedded in a webpage for the locked down device that I don't control to play back on the DRM'd TV. So I guess now we're also going to want a scheme to prevent government approved devices from establishing network connections with unapproved ones?

Right. To play legally purchased blu-rays. Who pirates movies and then burns them on a disk? And if someone did do that why would they be using a gimped blu-ray player instead of a media PC?

The only thing this scheme was ever going to catch was full blown counterfeit disks sold on a street corner to your average joe. I think that was only ever much of a thing in the developing world. Or was it just before my time?