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Vudu online Video On Demand launches

6 September 2007 9:21 by Rich "vurbal" Fiscus | 3 comments

Wednesday a new Internet based Video On Demand (VOD) service called Vudu was launched. The service will offer over 5,000 movies from both major studios and independent filmmakers.

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

Permalink to this article

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Vudu goes hi-def (15 November 2007)

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Ad supported content and set-top boxes key to future according to analysts (15 September 2007)

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RHI to release VOD and DVD simultaneously (24 August 2007)

D-Link is planning an Apple TV rival (11 August 2007)

Blockbuster gets new ammo in Netflix battle (9 August 2007)

Video-on-demand coming to PSP (28 July 2007)

Amazon upgrades TiVo interaction (10 July 2007)

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Cin�zime begins selling DRM-free movies (31 March 2007)

Netflix to test Video-On-Demand service (22 September 2004)

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Discuss this article!
PeaInAPod (AfterDawn Addict) 6 September 2007 14:21
Went to the Vudu site and watched a short video about there product. It is truly a ingenius idea in every way. Would love to get one but the $399 price tag means no Vudu for me :( http://my.vudu.com/buynow/ [ + quote] This message has been edited since posting. Last time this message was edited on 6 September 2007 14:23
Unfocused (Member) 9 September 2007 16:42
*Quote:* must buy a Vudu set-top box, How many devices do they expect the typical consumer to have attached to their TV? [ + quote]
borhan9 (AfterDawn Addict) 10 September 2007 18:18
this is just another one vod site that wants a percentage of the pie i think this will find it difficult. [ + quote]