Is Zediva's new-release movie streaming service legal?

Ars Technica: "Zediva—a new online movie service that gets around the need for studio licensing deals by renting users a physical disc and DVD player from afar—has proven to be a hit with users, which have stormed the startup since its launch last week. While Zediva’s popularity with public is clear, the legality of the service—and the movie industry’s opinion of the company—couldn’t be murkier."

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