It was a bit of both actually. We had this thing called an RVT (Remote Video Terminal) which was essentially a badass hardened laptop encased in steel running a lightly modified Redhat Linux 9 that attached to a small directional antenna. You could send 1 UAV operator who was trained in the RVT down to an Infantry TOC (Tactical Operations Center). He could hook it up and have it find the UAV in the sky and then show video to the infantry commander live. Yes it could be encrypted but the issue was that the bandwidth requirements of high res video + encryption were too great for the current hardware. Again, I believe that has been solved now that the tech has gotten much better, but I've not been in the military since 2005.
It's interesting that this statement could be true and at the same time every satellite and cable box in the US and in so many other countries routinely receives encrypted video, and a big portion of those receive HD. The SD version of the ones in the US went on line in 1996.
