Zip.ca video rental service shuts down

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Zip.ca chairman Rob Hall said Monday he is shutting down the firm that once made a thriving business of mailing DVDs to homes across the country.

“We’ve decided to close our doors,” Hall said in a note to subscribers. “As of today, we will no longer be shipping discs.”

The company, based in Ottawa, has mailed more than 20 million movies to subscribers over the past decade but failed to adapt to the world of video streaming.

Zip.ca had been reducing membership fees this month in anticipation of the move. Subscribers have been advised to return discs by the end of the month to avoid penalty fees of $25 per disc.

Hall said the company has also added a software feature to allow longtime subscribers to download their rental history in a spreadsheet provided they do it before Sept. 15.

“We know many of you have spent a lot of time building your Ziplists,” Hall said.

The company’s closure will also be another blow for Canada Post, the federal agency that delivered the movies.



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