Awesome Idea, but I think this is likely going to be shut down fast

Streamnation, a service that is designed (much like many others) to allow users to share Photo and Video with their friends have, according to reports including this article from  The Verge, have  announced Streamnation 2.0, with some new features

Now normally a new version of a service, really would not be all that NEWS or blog worthy, but the company behind this service is offering a very unique service.  They are promoting the service as a way for users to upload their Ripped DVD files for sharing with their friends via Cloud based streaming, highlighting a type of DRM that would allow the video file to only be accessible by one person on a user’s friend list at a time.

Service founder Jonathan Benassaya was quoted in the Verge article as saying

“The concept of borrowing inside of fair use is restricted to friends and family, and since there is no copy involved, you are not distributing multiple copies of the same content to your friends." So it works like Kindle book lending, except with streaming movies.”

and

 "Ten years ago, you could buy a DVD, rip it, and put it on computer, but now, you buy something on iTunes, and if tomorrow you have a Surface tablet, you can't watch it… Why spend the same amount of money for content that has more restrictions?"

Where things become really questionable about the future of this service and if it could be facing legal actions from the MPAA (Motion Picture Association of America) is that the service is a pay to access service, with users having to pay a monthly subscription fee ($9.99 for 500GB of storage on one pricing tier), with no mention what so ever if the industry gets any cut of the pricing.

This can potentially be viewed as encouraging users to ignore copyright and share their ripped commercial content with the public (not to forget mentioning that should the MPAA take this service down, it could legally also gain access to the service’s user list, which means potential lawsuits of the users for uploading copyrighted materials to the Internet) , the concept is from my viewpoint on unsteady ground.

Lets not even get into the whole issue about how the service would go about blocking streaming video download plugins, like Flashgot in Firefox, from allowing a user to make a offline copy on their end of the stream.

What do you think about this concept, Chance of it surviving or dead in the water before it’s out of the docks? leave your comments below