Zediva launched in January and has become very popular because it streams new releases (like Black Swan, The Social Network, more) and does not have delay windows like Netflix and Redbox do for physical discs.
The company "rents" users a DVD player and DVD and allows them to control it via online streaming.
What has helped the company become so popular is the prices of the movies. You can buy 10 streams for $10.
Zediva has claimed it does not need licenses because it is just "like" a brick-and-mortar rental company. When a customer rents a DVD, it takes it out of circulation, and does not create any digital copies.
The MPAA does not agree:
Comparing itself to a rental store is disingenuous, and Defendants are attempting to rely on technical gimmicks in an effort to avoid complying with U.S. Copyright Law. Defendants operate an online VOD service, not a neighborhood rental store.
The studios are scared Zediva will crush its profit margins and its relationship with companies that do offering licensed streaming, like Apple, Amazon and Netflix.
As is standard, the MPAA is seeking $150,000 per infringement.
Written by: Andre Yoskowitz @ 5 Apr 2011 12:53
