A startup named Zediva is trying to exploit a loophole to deliver instant streaming of new movies for $1.99 per rental.
To sidestep conventional agreements, Zediva’s system doesn’t stream a pre-existing data file. Instead they rent you a physical physical DVD spinning in a DVD player in its Silicon Valley data centre. It streams the live feed to your TV, computer, or phone.
Customers will be able to use all the conventional DVD controls, like rewind, fast forward, and chapter select. They will also have 14 days to watch the movie.
Between maintaining enough DVDs and DVD players to keep customers happy and the inevitable battle with Hollywood’s lawyers, we think Zediva has a bumpy road ahead.