System and method for watermarking of media segments using sample variants for normalized encryption (SVNE)

A method and device for consuming watermarked media content includes generating a manifest request to access a watermarked media content asset, receiving a custom manifest and a watermarking signature including a unique sequence of segment variants relating to the media content asset, and generating a segment request to an origin server having a plurality of composite segments for the media content asset. The client device receives, from the origin server, a composite segment that includes an authorized watermarked segment variant. Using the unique sequence, the client device extracts the authorized watermarked segment variant and assembles a combination of the main ISOBMFF track and authorized watermarked segment variant to form an output composite segment that is assembled only from the main ISOBMFF track and the extracted particular watermarked segment variant, and decrypts and decodes the output composite segment for rendering by a player application of the client device.