Thursday, March 17, 2011

Netflix (NASDAQ:NFLX) Rival Off to Big Start

Netflix (NASDAQ:NFLX) has another rival to worry about, this time a company called Zediva, which was inundated with new customers to the point of the registration limit being filled.

The company said on its website, "We sure are a busy bunch of monkeys trying to keep up with all our new customers! We're delighted that you are interested in watching new release movies on-line with Zediva. We're still a new company, so please excuse us while we catch up.

"Please do signup, and we'll add you to the waiting list. We'll let you know when we've reopen the doors (in the order that requests are received)."

The company differentiates by streaming the actual DVD from a DVD player. Customers rent control over the DVD for a period of four hours.

There is a plethora of DVD players somewhere in Silicon Valley in a warehouse of some sort playing movies.

The technology even allows renters full control over the DVD player as they can pause, rewind and add subtitles to the movie as they choose.

The company believes this 1:1 rental strategy circumvents regulations that restrict other services from streaming new releases at this time. Some lawyers agree, suggesting there will eventually be a lawsuit to test the service.

If not, it does allow customers to access movies before Netflix does, as they buy them off the shelves of retail stores and offer them immediately.

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