A system an method for distribution of electronic data over a network infrastructure that includes a client device for operation by a user desiring to receive the electronic data and server that contains the electronic data and offering the electronic data for downloading to the client device via the network infrastructure. The client device communicates a compound data key that includes a unique serial number associated with a particular piece of media to which the electronic data is to be stored to the server, vendor information and user information. The server encrypts the electronic data using the compound key, and downloads the encrypted electronic data to the client computer, where the client computer writes the encrypted electronic data to the particular piece of media such that the encrypted electronic data may only be accessed from the particular piece of media. The electronic data is decrypted for use by the apparatus or another device attached to the apparatus using the compound key as a data key, and the data is accessible from only the one piece of media having the unique serial number and is not accessible from any other media having a different or no identifier. In an alternate embodiment, the apparatus for reading the encrypted electronic data is connected to a general purpose computer having a media drive which reads the unique serial number and the electronic data from the one piece of media. The apparatus comprises an application specific integrated circuit which controls and executes instructions to accept the electronic data and the unique serial number from the general purpose computer.