Streaming Movie Service Zediva Pays Hollywood $1.8M, Shuts Down
Score another win for big content against online innovation. Last Friday, the Motion Picture Association of America announced that the spunky streaming movie startup Zediva agreed to close down permanently and to pay the studios $1.8 million and end its court battle with Hollywood. Zediva’s service, which debuted to the public in March, let users watch recently released DVDs over the internet for $2, by renting out a DVD and a DVD player (installed in Zediva’s server room) controlled by a customer’s computer. The service had its public debut in March, and was sued by the studios in April. Zediva struck no content ...

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