DVD Lending Library

What I’m wondering about this morning is why not create a lending library online. It would work something like this.
*Join the library
*Rip a DVD or register your own physical copy of the DVD if the library already has a copy
*Upload the DVD to the library and check it in.
*You now have a 1 check out credit
*The library saves the copy online and marks it as borrowable.
*Someone can check out the DVD copy (electronic version is downloaded or possibly streamed) and the copy is marked checked out.
*When finished viewing, delete the movie from your hard drive and mark it checked in. It’s now available for someone else to borrow.
*Borrowing is limited by number of check in credits.

Probably charge a small fee per DVD checkout to cover hosting costs. Maybe $0.25 or $0.25/day or week to encourage checking back in.

Checking in says that you have deleted the copy and is kind of on the honour system.

Alternative would be a small browser app that manages the checkout/download/play/delete/checkin operation.

The advantage is that the business just needs to provide bandwidth, storage, and collect money. Of course the web-site and application needs to be developed.

Does this meet the licensing requirements.