Friday, August 12, 2011

Zediva shuts down streaming DVD service

Zediva pulled the plug on its streaming movie service, responding to a court order that was issued last week.

Debuting in March, Zediva attempted to skirt copyright law by allowing users to rent DVDs on the same day they hit retail outlets, and streaming movies to viewers via the Web. But a U.S District Court judge in California didn't buy the company's argument, and issued a preliminary injunction against Zediva on Aug. 1.

Zediva hopes that the shutdown is temporary, telling customers that it plans to appeal the court's ruling.

They notified subscribers of the shutdown on Wednesday, and also broke the news on its website.

From Site:.
You may have heard by now that we're having to lay off our DVD-changing monkeys... :-)
A couple of years ago we came up with an idea for the next generation of DVD rentals. It seemed to us logical and evolutionary that if a customer was able to rent and play a DVD in his home, there should be no reason why he or she could not do that from the Internet cloud. After all, you can do that with a DVR, so why not with a DVD player?
Well, it turns out to have been a little more complicated than that ...
We are suspending Zediva's operations to comply with an order by the United States District Court for the Central District of California.
While we hope to be back online soon, we don't know when (or whether) that will happen. We are disappointed by this turn of events, and that we are not permitted to serve you.
We are quite aware that some of you have unused credits with us and appreciate your patience as we figure out our next steps. Stay tuned for more information via email.
Thank you again for your great support. It has been a blast serving you.

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