If you’ve been waiting for an invite to Zediva’s cut-rate streaming video service, it might be time to give up. A federal judge has granted a preliminary injunction against Zediva on grounds of copyright infringement, which should lead to the site’s closure in about one week, CNet’s Greg Sandoval reports.
Zediva launched out of beta last March, with streaming rentals of new releases for $2 per night, or $10 for a 10-pack. It offered new movies before they became available through Netflix and Redbox, and didn’t pay a dime to movie studios. The trick was to let each individual user rent an entire DVD player, along with the disc inside, remotely over the Internet. Zediva argued that it was just like a brick-and-mortar rental store, but with a different delivery method.
Not surprisingly, movie studios disagreed. The Motion Picture Association of America sued Zediva and argued that the service’s rentals were actually performances, entitling studios to licensing fees. U.S. District Judge John Walter concurred, and has given Zediva and the MPAA a week to work out the wording of an injunction.