Yeah they can, but blu-ray is suppossed to take it a few steps further.
This is from CDFreaks.com
The foundation of the Blu-ray content management system, AACS(1), is a state of the art content management system that is many times more powerful than that used in DVD. Additionally, AACS enables new consumer usage models around network functionality and internet connectivity including managing copies, in an authorized and secure manner.
In addition to AACS, the BDA took a dramatic step in the battle against mass production piracy with the adoption of ROM Mark. ROM Mark, which is unique to Blu-ray Disc, is a new technology designed specifically to thwart large scale, mass production piracy, a problem that experts estimate costs the movie industry alone in excess of $3 billion per year in lost revenue. To combat this, the ROM Mark technology embeds a unique and undetectable identifier in pre-recorded BD-ROM media such as movies, music and games. While invisible to consumers, this ROM Mark can only be mastered with equipment available to licensed BD-ROM manufacturers, essentially preventing unauthorized copies of a disc.
The BDA also adopted "BD+", a Blu-ray Disc specific programmable renewability enhancement that gives content providers an additional means to respond to organized attacks on the security system by allowing dynamic updates of compromised code. With these enhancements, content providers have a number of methods to choose from to combat hacks on Blu-ray players. Moreover, BD+ affects only players that have been attacked, as opposed to those that are vulnerable but haven't been attacked and therefore continue to operate properly.