Andre Yoskowitz
28 Oct 2011 18:15
Because the MPAA took down the service so quickly I doubt anyone here go to use it, I will first post a bit of history.
Zediva launched in January and has become very popular because it streamed new releases and did not have delay windows like Netflix and Redbox do for physical discs.
The company "rents" users a physical DVD player at Zediva and a DVD and allows them to control it via online streaming. What had helped the company become so popular was the prices of the movies. You could buy 10 streams for $10, including new releases. Zediva claimed to be legal and argued it did not need licenses because it is just like a brick-and-mortar rental company. When a customer rented a DVD, that physical DVD was then taken out of circulation, and the company did not create any digital copies.
In April, the MPAA set out on a crusade to shut the service down and they have now succeeded.
The MPAA argued that Zediva wasn't holding private exhibitions of its movies as it claimed but was instead infringing its "exclusive rights to perform their works publicly." The Judge agreed.
Zediva and the MPAA have reached a settlement this week and the site is shutting down, permanently. Zediva will pay $1.8 million in fees and close down, dropping their countersuit and appeal.