Yep, I concur, that's about as illegal as one can get without written permission from the film owners (per film) granting permission to rent out copies and providing the means by which you pay them their royalties on said rentals.
Hahahah. That is true and we know it. We are a team working towards providing VoD and pay per view services for the hospitality industry in my country. At the moment the business develoment unit for this project have spoken and is still speaking to a lot of foreign agencies on the matter of getting the right to rent certain works (movies). So far so good we have not succeded. In our last meeting the only choice we are left with is to directly contact each studio in the United States for that right.
As part of the technical team I am to come up with the platform on which this service will run. At the moment I amconsidering XBmc or plex. For some reason I prefer PLEX.
Plseae I will be glad if anyone can pointme in the right direction as regards getting a license that will allow me rent US made movies. Here in my country we have an umbrella body that gives such license and we have it.