Customers must buy a Vudu set-top box, which is used to store the downloaded movies, which will include Dreamgirls and 300.
"Vudu is being introduced in an area that's had some tough history," said Kurt Scherf, analyst at Parks Associates. "It's been clear that the movie-on-demand model via the Internet has so far underperformed Hollywood studios expectations."
They aren't the first company to try making money at VOD, but others haven't seen a great deal of success. Just last year one big name, Movielink, was sold to Blockbuster, and may eventually become just an extension of the brick and mortar chain's internet rental service.
Vudu's set-top box model may be more successful simply based on consumer comfort. Delivery aside, the technology seems more DVR-like than the early services. Although other manufacturers like Apple (Apple TV) and Microsoft (Xbox Live) are already offering downloaded content, both are really marketed around proprietary devices (the iPod and Xbox 360) instead of just a television.
If they can establish a wide variety of video for a reasonable price other companies may have to start paying attention.
Source: Reuters
Written by: Rich Fiscus @ 6 Sep 2007 9:21
