Think about a streaming service which would play songs but some songs could only be decoded using Beats or Skullcandy...
DRM can rarely be used as a protection against mass copying and pretty much never when you cannot control the analog output of the protected content, it's only real use it to restrict how lawfull consumers can access and use the content. External DAC's have existed for Android devices for quite a while (BT/USB DAC's), and even for iOS (you could connect a DAC to an iPhone/iPad since they switched to the Lighting cable). The streaming industry has almost hit a dead end with monetization, having a digital interface that can be controlled gives them a whole new avenue of value added services and while it's unlikely that they'll jump on it immediately I would bet my money on the likes of Spotify, Amazon Music, and Apple Music capitalizing on this within the next 2 years.
At the start, you'd need to modify headphones to be able to record the signal, but I doubt this will work in the long term. At some point it's highly likely the DACs will come with DRM so that only approved headphones work with a device.
The same can be the case with type-C.
Mind you, you'd still be able to cannibalise an existing set for this.
DRM is not about preventing this, though. It's about making ordinary consumers surrender to whatever media dictates, not preventing absolutely everyone from ripping the content.
The only "DRM" I can think of with USB-C is playing impedance games. So right now you could probably get away with soldering a 1K resistor and a RCA plug in place of the headphone element and you'll have a usable signal, but if they played weird impedance games you might need a simple opamp in there to adjust the levels to normal.
Something that's annoying today is to get line level audio out of the bluetooth connection to my car stereo I need to bypass a nanny warning about blowing my ears out, but only on my phone. Apparently "line level" on my BT adapter that makes my BT volume about the same as, say, the radio or CD, would, if connected to a BT earpiece or headphones, blow someones ears out. You can safely assume the people who screwed up something so incredibly simple as setting levels, will successfully find a way to screw up usb-C headphone levels. So one brand will nanny-state and prevent anything louder than a church whisper, others will sound different levels based on what device they connect to, it'll be the predictable epic fail.
Speaking of my nice bluetooth headphones with their couple hours of battery life, since buying them many years ago I haven't plugged headphones into my phone or tablet. They're nice enough headphones. I'm just surprised the marketing push is to keep shoving audio thru legacy wired cables instead of going full on bluetooth. I suppose there's a lot of money to be made in worn out headphone cables. When I'm not listening to music, but speech instead (audio books, podcasts, etc) I'll swap my bluetooth headphones for my bluetooth earpiece thingy.
I didn't mean to imply DRM existed in USB-C today, what I was implying is that the move away from the 3.5mm jack to USB-C audio is at least partly driven by DRM (in the long run). It's like what happened with HDMI. HDMI is more or less DVI-D video + digital audio + DRM (HDCP). What was the point of adding in the DRM to HDMI? What risk was posed by unencrypted DVI video streams? In my opinion, similar arguments for adding DRM to HDMI will be given for adding DRM in future revisions of USB-C audio. Perhaps the phone manufacturers will also use the argument that dodgy USB-C cables can damage devices (due to the high power spec for USB-C). In any case, I'm fairly certain that those that seek to benefit from DRM will be looking to add it in.
Phones are getting slimmer, and the 3.5mm jack is the single thickest component in the phone. Removing it makes sense from this perspective.
Now, sure, you theoretically could use USB-C for DRM, but until someone actually implements this, I'll apply Occam's razor.
Consider that iTunes and the like have been selling DRM-free music for years now. And that, even though Blu-ray players require HDCP DRM in order to play back video, they don't require it for audio.
I hear it needs to lose the bezels.
I hear it needs a larger battery.
I never hear it needs to be thinner.
[0] Nor do I read about many people wanting it thinner.
Phones are thin enough. Plus people buy these thin phones then slap thick $5 rubber covers on them, what is even the point anymore? If people really want a thin phone then ditch the accessories, they're thin already.
Here's the problem with that perspective...
1. The 3.5mm jack isn't the thickest part of modern smartphones. To give one example, the camera module tends to be thicker.
2. As far as I've seen pretty much nobody is looking for phones to get any slimmer, especially as slimmer phones = smaller batteries.
If you can find me any comments online from other people stating that the current top of the line smartphones are too thick, I'll be very surprised.
Since there's no way of doing authentication signaling on it in a way that can be enforced without mutual cooperation, there's no way to limit access and/or monetize the audio experience any further than it is right now.
USB-C removes those obstacles. This only lives in the land of potentiality right now, but the path is pretty clear. Once you have accessories that can mutually authenticate, you can limit access in exchange for money. This is technically a "slippery slope" argument, but I think capitalism gives us ample evidence to show that it's neither an illogical nor improbable step.