Summary Box: Zediva offers new movies online

AP News
Posted: Mar 16, 2011 3:57 PM

WHAT IS ZEDIVA? A California startup that is making new hit movies such as "The Fighter" available for instant viewing online through a loophole: It lets customers rent a DVD and a player that are actually located in the Silicon Valley. It then streams the films over the Internet.

IS IT LEGAL? Zediva says it is like a brick-and-mortar DVD service. Copyright lawyer Bob Garrett, however, says there's a difference because Zediva is transmitting content, which requires separate copyright permission.

HOW MUCH IS IT? Zediva charges $1.99 per movie, which you get for four hours. If you don't want to watch it in one sitting, you have up to 14 days to finish it.