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Zediva Tries A Streaming Movie End Around
Giving Users Direct Control Of Remote DVD Players
by AndyDufresne Thursday 17-Mar-2011 tags: legal · Video · business · content · consumers
David Pogue over at the soon-to-be-paywalled New York Times has an interesting profile of a new startup by the name of Zediva. As companies like Netflix knows (with their forced 30-day new release delay), Hollywood uses heavy licensing restrictions on broadband video streaming content under the belief that this will somehow help save DVD sale revenue. Zediva's attempt to get around these restrictions is both simple and clever: they're essentially streaming content via broadband to subscribers from a room full of networked DVD players. That not only will give users access to the films, but all the additional DVD content including director commentary tracks. Says Pogue:

At its California data center, Zediva has set up hundreds of DVD players. They’re automated, jukebox-style. You’re not just renting a movie; you’re actually taking control of the player that contains the movie you want. The DVD is simply sending you the audio and video signals, as if it were connected to your home with a really, really long cable. It's kind of hilarious to think that this arrangement is the solution to the future of online movies: data centers stacked to the ceiling with DVD players.

The move for the time being helps Zediva get around the new release delay and other restrictions imposed on companies like Netflix, though they obviously are going to have to be prepared for the inevitable legal onslaught from the entertainment industry.

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Network Guy
Premium
join:2000-08-25
New York

LOL

That's actually really clever. I like it

But yeah.. Hollywood will knock that very soon.

S_engineer
Premium
join:2007-05-16
Chicago, IL

Re: LOL

last night I tried to get to the site and I could not be connected. Now, its a waitlist. Sounds to me like a pretty small outfit looking for a venture capitalist. Now if that were true, they'd better find enough to fight hollywoods goons....the congress, the courts, and the caps!
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Network Guy
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join:2000-08-25
New York
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Re: LOL

said by S_engineer:

l ast night I tried to get to the site and I could not be connected. Now, its a waitlist. Sounds to me like a pretty small outfit looking for a venture capitalist. Now if that were true, they'd better find enough to fight hollywoods goons....the congress!

Well, the concept is sheer genius.

Hollywood is busy protecting revenues of physical media and piracy. Stacks of DVD players streaming content addresses both; Zediva keeps buying physical media to stream online, and the DVD player addresses DRM.

I would love to see Hollywood cook up a new defense on this.

56403739
Less than 5 months left
Premium
join:2006-03-08
Naples, FL
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Nice try, but they'll be impaled on performance rights restrictions.

Morac
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I'm pretty sure the MPAA will say that even though physical DVDs are being used, that it's still streaming because, well the video and audio are being streamed.

Now maybe if they set up a close circuit TV feed, pointing at TV monitors where the DVDs are playing...., nah.
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Gbcue
P.E.
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kudos:8

Caps Will Kill Them

See title.

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC
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Bravo!

#winning
AndyDufresne
Premium
join:2010-10-30

Very ingenious on their part

But to scale up they are going to need a ton of cash and also to fend off the army of lawyers that is marching towards them. If they somehow manage to get this to trial it would be very interesting.
Network Guy
Premium
join:2000-08-25
New York

Re: Very ingenious on their part

DVD players are cheap these days

The majority of their monies will be spent in legal defense, no doubt.

bobrk
You kids get offa my lawn
Premium
join:2000-02-02
San Jose, CA

Cute idea...

...but I wonder how it's going to scale...

Gbcue
P.E.
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kudos:8

Re: Cute idea...

said by bobrk:

...but I wonder how it's going to scale...

Add more players?
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iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Cute idea...

Whose caps?

battleop

join:2005-09-28
00000

Re: Cute idea...

Didn't you know that every single ISP in the galaxy will do exactly as AT&T does?
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Cute idea...

Sorry, missed that memo. Did they post it on www.google.com?

cdru
Go Colts
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said by bobrk:

...but I wonder how it's going to scale...

Rip image, save on hard drive, stream as many copies as needed/"licensed". Store physical copies in a box in some warehouse for when they get audited and/or sued.

bobrk
You kids get offa my lawn
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Re: Cute idea...

said by cdru:

said by bobrk:

...but I wonder how it's going to scale...

Rip image, save on hard drive, stream as many copies as needed/"licensed". Store physical copies in a box in some warehouse for when they get audited and/or sued.

Ok, let's pay attention here. The business model is you controlling your own DVD player directly. There are no hard drives. So for every simultaneous streaming video, there has to be a DVD player and the associated machinery to load it.

cdru
Go Colts
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Re: Cute idea...

said by bobrk:

Ok, let's pay attention here. The business model is you controlling your own DVD player directly. There are no hard drives. So for every simultaneous streaming video, there has to be a DVD player and the associated machinery to load it.

I am paying attention. Let me break it down for those that are a little slower.

Obviously 1 DVD player/stream is less than practical. It just doesn't scale both from an efficiency, space, or cost standpoint. Even if you were using a specialized DVD changer rack mounted, it's just not optimal.

You can rip a bitwise identical copy of the disc, save a few hundred discs to a single hard drive, and serve up multiple streams from the same disc image mounted to the server. From the server's standpoint, there is a CD in a drive somewhere, just that somewhere is a virtual drive and the disc is an iso image.

You now have less servers, less DVD drives with mechanisms that fail far more often then hard drives, faster/larger hard drives, less datacenter space, etc...
GLX

join:2000-01-18
San Francisco, CA

Re: Cute idea...

Read the First Sale doctrine. You are changing the media type. This is not allowed.

bobrk
You kids get offa my lawn
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San Jose, CA
Dude, I get it. That's the point I'm trying to make. I don't think it will scale. But that doesn't change that this is what they're doing.

Streetlight

join:2005-11-07
Colorado Springs, CO

Lots of DVD players soon to be available

My guess is that all these DVD players will be for sale soon on eBay or Craig's List.

En Enfer
This account has been compromised

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Re: Lots of DVD players soon to be available

Forget physical DVD players: make a ISO image of a DVD, use software to decode them, stream to the end user. Much easier.
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skuv

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Re: Lots of DVD players soon to be available

said by En Enfer:

Forget physical DVD players: make a ISO image of a DVD, use software to decode them, stream to the end user. Much easier.

But if they are taken to court and they have done that, then they have broken the copyright protection on the discs and can be subject to penalties from that.

I'm sure that is why they decided to go with separate DVD players.

But they are going to lose on this one. This is no different than a cable or satellite company deciding to start a channel where they have a DVD player connected and just play a random movie and broadcast it.

They don't have the rights to broadcast these DVD's over the Internet. There is no legal way around having to obtain that license to broadcast. If you didn't have to do that, Netflix could just rip DVD's and stream anything they wanted.

But their streaming catalog is limited because they have to get licenses to stream the content.
iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Lots of DVD players soon to be available

This is different: the streaming is going on 1:1 between the DVD players and the users. It's not a broadcast if it's 1:1.
Ulmo

join:2005-09-22
San Jose, CA
Ahh, but you fail: Internet != Broadcast. This is point to point, single view. Only if it were sent to Multicast, or via Radio, would it be broadcast. Internet != Broadcast.

gigahurtz
Premium
join:2001-10-20
Palm Coast, FL

I love the idea but..

I don't think it's going to last. It's only a matter of time before the MPAA figures out a way to bring these guys down. It's a great idea, but I just can't see how this will last.

Lazarus
Slavin Away
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Dickinson, ND

Re: I love the idea but..

And we will get to see one of the big companies shoot themselves in the foot again because they refuse to adapt to change and customer demand.

mix

join:2002-03-19
Utica, MI

What kind of dvd player?

Are they stand alone units like you would hook up to your tv or entertainment center and operate with a remote control from your couch, or are they really just a bunch of dvd-rom drives attached to a server? My guess is the later.

HappyAnarchy

@iauq.com

Already not legal

Don't all those DVDs say something to the effect of "For Private Use Only"

It is the same reason you can't buy DVDs to run a theatre.

swintec
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Re: Already not legal

said by HappyAnarchy :

Don't all those DVDs say something to the effect of "For Private Use Only"

It is the same reason you can't buy DVDs to run a theatre.

From the quote "You’re not just renting a movie; you’re actually taking control of the player that contains the movie you want."...So it is private since you are taking control of one DVD player for yourself. I wonder how they will deal with users "hogging" the machine by constantly watching movie after movie.
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iansltx

join:2007-02-19
Golden, CO
kudos:2

Re: Already not legal

They're fine with that; people pay per movie.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1
said by HappyAnarchy :

Don't all those DVDs say something to the effect of "For Private Use Only"

It is the same reason you can't buy DVDs to run a theatre.

No warnings or messages can overrule law. First sale still stands even if the FBI warning said you will be anally probed by martians if you sell or rent the dVD.
ArizonaSteve

join:2004-01-31
Apache Junction, AZ

What About The Caps?

So how are they going to provide high speed internet to everyone so we can watch the movies? And what about the data caps and the high cost? Paying $50 per 1Gb on T-mobile would cost me $200 to watch just one movie!

ScottMo
Once in a Lifetime
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join:2000-12-15
Stony Brook, NY

Re: What About The Caps?

You bring your own internet. McDonalds doesn't provide people cars so they can use the drive through.

Sorry if your internet is so expensive, but just because it doesn't work for you doesn't mean it doesn't work for everyone.
ArizonaSteve

join:2004-01-31
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Re: What About The Caps?

But it doesn't work for most people. I've seen reports lately that say 2/3 of the country can't get high speed broadband. That's even higher than I had thought since I was guessing it was about half but it's not available at all in my area near Phoenix. If someone has to bring their own internet where do they get it from?
neftv

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Broomall, PA
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Hollywood

When will Hollywood get their head out of their butt and leave these companies alone that do streaming over internet. It's always about jealously and greed. Your Hollywood was smart they would get into the game directly and have a huge piece of the action.
Kearnstd
Elf Wizard
Premium
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Mullica Hill, NJ

Re: Hollywood

said by neftv:

When will Hollywood get their head out of their butt and leave these companies alone that do streaming over internet. It's always about jealously and greed. Your Hollywood was smart they would get into the game directly and have a huge piece of the action.

if they where smart they would give their entire movie vault to Netflix(for a nominal license fee) with almost no restrictions. and let them add it to streaming. I mean the studios have thousands of movies making no money right now. many of which do not have the following to make it worth scaling up a DVD line for. but if they digitize it and let Netflix stream it they just might get some revenue from an old movie.
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patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: Hollywood

If you let out the old movies, they will just steal $ and viewership eyes. Keeping them locked up ensures the latest movies will have eyes. Overpaid producers and celebrities wont have a job then *tiny violin music*

snipper_cr
Premium
join:2002-01-22
Wheaton, IL

Genius

Okay, I, like many others here, find this pure genius. A simple yet legal (maybe?) way around stream restrictions imposed on netflix. I wonder who thought of this and how the thought transpired...
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markf

join:2008-01-24
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Nice try but...

This will get shot down in any court of law as a violation of licencing agreements for DVD's. When you buy a DVD you actually are only buying licence to play the DVD under the conditions set out by the copyright owner.

I'm not 100% sure, but I can't imagine video stores just buy DVD's off the shelf to rent. They must have agreements to buy and rent out DVD's at a certain royalty per rental.

As much as I'd love such an idea to work, the courts will look at it and shoot it down. Just being realistic here, but points to them for trying.
Automate

join:2001-06-26
Atlanta, GA

Re: Nice try but...

Wrong. That is exactly what Redbox did.
PCDEC

join:2004-10-12
Allentown, PA

Re: Nice try but...

Exactly. Redbox buys DVDs then puts them in vending machines and people borrow them. This is basically the same thing only you are borrowing the disc, the DVD player, and access to the player.

Like paying someone to give you the key to their house so u can go watch their movies.
rradina

join:2000-08-08
Chesterfield, MO

Re: Nice try but...

I thought RedBox paid the movie copyright holder a fee for each rental? In fact, I thought all rental services paid the copyright holder a per-view fee.

This approach seems to be no different but they will get their day in court. This is similar to the network DVR feud that fueled the 401k plans of quite a few lawyers.

ScottMo
Once in a Lifetime
Premium,MVM
join:2000-12-15
Stony Brook, NY
Redbox actually buys DVD wholesale, not retail. They did buy some retail during their fight with Warners, et al a year ago, but that's not the way they usually operate.

»www.benzinga.com/news/11/02/8667···str-nflx
amungus
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America
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hahahahahaha

hahahahahahahahaha... hahahahahahahaha... hahahahahahaha
Too funny! Go underdog.

Slingbox is 1:1 as well, right? If they do get hassled, I hope they end up with a judge who laughs this out of court, and then expand like crazy.

Why not franchise this to better localize? If done right, it'd almost be the next local video store kind of thing.

ISPs would be happy - bandwidth would be local to the area instead of across trunk lines, unless the local hub didn't have the DVD...
...At that point, caps would have to be irrelevant for local distribution...

..which is yet another point... caps shouldn't apply to traffic within an ISPs network. ...hmm... perhaps why so many got rid of newsgroups?

Whatever happens, this story makes me smile
Ulmo

join:2005-09-22
San Jose, CA

Re: hahahahahaha

Many ISPs point out backbones are currently still not the bottleneck; the local loop is.
frugalfreake

join:2011-03-16

1 edit

Media companies doing

They have held back closed captioning to be used as a marketing ploy for DVD sales from those that need it to even have equal access. They are the ones who held the magnifyer in a hot blazing sun. It burns doesn't it? I know the feeling.
equivocal

join:2008-01-23
USA

Always in the details

It seems obvious, or at least something that's crossed my mind. But implementation is a long way from concept.

They'd have to have a DVD player for every customer. Well, maybe not all of them, but however many try to stream at any given time. Hmm, an implementation detail.

I bet they wish they could rip the DVDs to HDD. Even if they could guarantee that the number of customer accessing a copy never exceeds the number of physical DVDs in their possession, they'd lose the legal battle on having ripped in the first place. (Geez, didn't someone already lose this battle?)

Physical DVD players is a good defense. Where does it cross over to being illegal:
1) A storefront where customers pick up and return DVD players preloaded with a DVD in person.
2) A storefront where DVD players sent to and returned by customers via UPS.
3) DVD players at storefront, A/V & remote control cables run from each DVD player to a customer.
4) #3, with a giant crossbar switch allows any customer to be hooked exclusively to any DVD player.
5) DVD players at warehouse in the valley, A/V & control signals routed over broadband internet.

If they're successful they'll get to learn about DVD player failure rates they way Google learned about HDD failure rates.

Jason Levine
Premium
join:2001-07-13
USA

Won't Scale

Even if we assume that the MPAA doesn't go after them (big assumption), this just won't scale. You would need one DVD player per active user. If you had a hundred thousand users active at any given time, you'd need to be juggling 100,000 DVD players. If a significant amount of those users requested the same DVD, you'd run out of copies to serve.

Contrast this against streaming where you just send the video file to the user. It is much easier to scale this from 1,000 users to 1,000,000 users than it is to scale physical DVD players and physical discs.

Now, if they were making ISO images of the DVDs and virtualizing the DVD player, there might be hope for them. (Of course, then they definitely would run afoul of the MPAA so there wouldn't be hope anymore.)
--
-Jason Levine

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