Zediva Down, But Not Out

Zediva Down, But Not Out

posted Wednesday Aug 3, 2011 by Scott Ertz

Zediva Down, But Not Out

Zediva, a video streaming service, started their public offering in March to mixed reviews. Zediva was formed to allow people to rent movies before they are available to RedBox and stream long before Netflix. They did this through an interesting means, though. The company has no agreements with the studios for streaming, but instead streams one-for-one physical DVDs.

While the allure of $2 video rentals was appealing, it was only a matter of time before a lawsuit came about. That suit was not far behind, coming in April. A group of studios, including 20th Century Fox, Columbia Pictures, Disney Enterprises, Paramount, Universal and Warner Bros, filed a suit against the start-up claiming copyright infringement. They claim Zediva uses "technical gimmicks" to skirt copyright law. This week, a US District Judge agreed.

To find out what he said and how Zediva responded, hit the break.

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