Why won't Home Sharing play Protected AAC files on iOS 7?

The Details
iTunes 11.1.3 on an Early 2009 iMac running 10.8.5
Two iPhone Fives running iOS 7.04
iPad 2 running 7.04
iPad running iOS 5.1.1
When sharing my iTunes library from my iMac, protected AAC files will not play on my iOS devices running iOS 7.0.4, however they will play on my wife's old iPad running iOS 5.1.1. Also, I've noticed that music purchased from the iTunes store comes or came in two different flavors, purchased AAC files and Protected AAC files. So, while my devices running 7.0.4 won't play protected AAC files, all of my devices will play purchased AAC files.
I don't know if it matters, but all four of the devices are using my Apple ID  in Settings > Music > Home Sharing, and one of the iPhones and the old iPad are used by my wife and in Settings > iCloud > is a different ID for her iCloud Account.
What gives?
Thank you
Cloudhr

The protected AAC files WILL play on her iPad running iOS 5.1.1. They WON'T play on any of our iOS devices running iOS 7.0.4. All the files were imported into my iTunes library using the same Apple ID. There is only one iTunes account which uses my Apple ID and credit card info. All of our devices sync to my iTunes library in my administarator account on my my iMac.
Thank you
Cloudhr

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