Is This a Serious Netflix (NFLX) Alternative?
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If you were looking to the future for an answer to who will topple Netflix Inc. (NASDAQ: NFLX), perhaps you should have hit rewind.
New York Times reporter David Pogue wrote about a new service from start-up Zediva, which is taking up space in a California data center with hundreds of DVD players (you remember those newly archaic devices), streaming physical copies of new release movies online.
The advantages of Zediva's service allows users to buy rent one movie for $2 or get a 10-pack to $10, while requiring no sign-up fee, no monthly fee and no hardware needed. Movies are rented for two weeks at a time, an new releases are available the day they come out.
Just imagine mounds of DVD changers set up like jukeboxes, each holding the top 100 movies at any given time, with the user controlling which title they would like to view. This makes Zediva a literal-virtual Blockbuster.
Unlike Netflix, the user is not simply streaming the content. The Zediva DVD player is playing the physical copy of the movie and simply sending the audio and video signals over the Internet. This setup also makes DVD extras accessible, like commentaries, languages and subtitles.
So what could derail this seemingly brilliant plan?
First, the Motion Picture Association of America doesn't take kindly to anyone sticking their hand in the Hollywood cookie jar. But Zediva will argue that it is no different than the way Netflix ships DVDs by mail, and as long as The copies are purchased legally, there should be no legal ground for the MPAA to stand on.
“We’re confident that the law allows you to watch a DVD that you’ve rented,” a company representative told Bogue.
Another problem will be how much can Zediva handle? Will there be long queues for the latest movies?
The company did not say how many DVD players it is running, but did say Zediva can handle thousands of users, hoping to expand to millions.
As expected, the site has been bombarded with new users following the release of the NYT article.
Will it be a Hollywood ending for this ambitious startup?
New York Times reporter David Pogue wrote about a new service from start-up Zediva, which is taking up space in a California data center with hundreds of DVD players (you remember those newly archaic devices), streaming physical copies of new release movies online.
The advantages of Zediva's service allows users to buy rent one movie for $2 or get a 10-pack to $10, while requiring no sign-up fee, no monthly fee and no hardware needed. Movies are rented for two weeks at a time, an new releases are available the day they come out.
Just imagine mounds of DVD changers set up like jukeboxes, each holding the top 100 movies at any given time, with the user controlling which title they would like to view. This makes Zediva a literal-virtual Blockbuster.
Unlike Netflix, the user is not simply streaming the content. The Zediva DVD player is playing the physical copy of the movie and simply sending the audio and video signals over the Internet. This setup also makes DVD extras accessible, like commentaries, languages and subtitles.
So what could derail this seemingly brilliant plan?
First, the Motion Picture Association of America doesn't take kindly to anyone sticking their hand in the Hollywood cookie jar. But Zediva will argue that it is no different than the way Netflix ships DVDs by mail, and as long as The copies are purchased legally, there should be no legal ground for the MPAA to stand on.
“We’re confident that the law allows you to watch a DVD that you’ve rented,” a company representative told Bogue.
Another problem will be how much can Zediva handle? Will there be long queues for the latest movies?
The company did not say how many DVD players it is running, but did say Zediva can handle thousands of users, hoping to expand to millions.
As expected, the site has been bombarded with new users following the release of the NYT article.
Will it be a Hollywood ending for this ambitious startup?
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