On the contrary, client-side processing means it is burning the battery in users' devices, not consuming any cloud resources. It could very well be cheaper for the companies to implement.
If it is running on my device, software can be cracked. This will prove fun.
That some technically proficient people will find ways around it is beyond doubt, however it may prove to be an effective system for information control despite that, if the common user finds it difficult to circumvent.