If you are a fan of the streaming movie rental site Zediva, you may be bummed to hear this. The site has been forced to close its doors, at least for now. Some of the Hollywood studios took the Zediva service to court over the method of streaming movies the site used.
Apparently, Zediva had a bunch of DVD players hooked to the web. They would buy a copy of a movie and then stream it over the internet somehow. Zediva claimed it was no different than a normal movie rental store, but the judge didn’t buy it. Hollywood had an issue because it only got paid once when Zediva bought the DVD.
Understanding Zediva’s Business Model
Zediva’s business model was quite unique and innovative. Unlike traditional streaming services like Netflix or Hulu, which negotiate licensing deals with studios to stream their content, Zediva operated more like a traditional video rental store. They purchased physical DVDs and then allowed users to “rent” these DVDs by streaming them over the internet. This approach was intended to bypass the expensive licensing fees that streaming services typically pay to studios.
The company argued that their service was akin to a customer renting a DVD from a brick-and-mortar store and watching it at home. However, instead of physically handing over the DVD, Zediva streamed the content directly to the user’s device. This method raised eyebrows in Hollywood, as it circumvented the traditional revenue streams that studios rely on.
The Legal Battle and Its Implications
The Hollywood studios were granted their court order for the site to be closed. The studios argued that Zediva’s model violated copyright laws because it constituted an unauthorized public performance of their films. The court sided with the studios, stating that Zediva’s streaming service was not the same as a traditional rental and thus required proper licensing agreements.
Zediva notes that it is going to appeal the decision. However, there is really no chance the site will open. The management says that people with credit to the store will be notified of what the company will do as soon as they figure things out.
The closure of Zediva highlights the complexities and challenges of navigating copyright laws in the digital age. While Zediva’s model was innovative, it ultimately failed to align with the legal frameworks that govern content distribution. This case serves as a reminder of the importance of securing proper licensing agreements when dealing with copyrighted material.
Moreover, the outcome of this legal battle could have broader implications for other startups and companies looking to innovate in the digital content space. It underscores the need for businesses to thoroughly understand and comply with copyright laws to avoid similar legal pitfalls.
In conclusion, while Zediva’s closure is a disappointment for its fans, it also serves as a valuable lesson for the industry. The case illustrates the ongoing tension between innovation and regulation in the digital age. As technology continues to evolve, it will be crucial for businesses to find ways to innovate within the bounds of the law to ensure sustainable success.
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
