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VUDU Difficulties Sign of Hard Times for Stand-Alone OTT Set-Tops?

By Michael Wolf | August 26th, 2008 Interest Level: SMOKING HOT


Long-time CE Pro writer and friend Julie Jacobson broke the story this weekend about VUDU’s problems. While the rumor mill has been going full-steam about VUDU and there were some exaggerations about the company’s demise, it does appear that they have laid off some employees, including the main outward facing contact to press and analysts Patrick Cosson. I was quite frankly surprised about this, especially given that the company has been doing some significant pre-briefings heading in CEDIA. The company has been talking about (as can be seen by this article by Julie) about lots more HD content support and allowing for 1080p HD content over component. All very interesting stuff, but now overshadowed by the company’s reported problems.

I am a fan of VUDU, and think that is perhaps may be the best overall standalone OTT movie box out there. The problem for VUDU and others is the continued push by both the game console vendors into OTT movie downloads as well as the push by the likes of Yahoo! to open up their widget platforms to all Internet connected set tops. The price tag for standalone boxes is more than most would pay, especially if they can get similar (if not equal) services through another box like a game console (which also, it goes without saying, plays games and DVDs). Apple TV may prove the exception to the standalone box rule, and the interesting thing here is Apple may actually heading in the opposite direction by pushing games on the Apple TV.

The large-scale trend against these hardware centric plays is the services component for OTT video can and is being abstracted and, with the exception of Apple, there isn’t any content aggregator tied to specific box that can compel an audience of millions to buy the box tied to a walled garden service. Yahoo!/Intel’s announcement last week may also have shuttered future plans for the standalone OTT hardware startups, in various states, making the rounds on VC desks.

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Michael Wolf is Director of Digital Home Research at ABI Research and the host of The Media Center Show podcast.
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  • Mark Wrazen
    Sorry the model number for the VUDU box is BX 100.

    My bad. :( I would have edited if I could.
  • Mark Wrazen
    VUDU MX-100 IS NOW SHIPPING to BEST BUY stores in over 20 markets.

    The players activated by DEC, 31st 2008 will include a $200 movie credit on all accounts activated with a valid credit card. This promotion matches the price point of the ROKU/Netflix OTT box and also INCLUDES A 250GB Harddrive to store movies/content.

    Roku is $99 and a Vudu MX-100 is $299 Plus a ($200) credit towards content. Net cost is $99 for a Vudu MX-100 with this promotion.

    I happen to have some inside information that VUDU is investing heavily in its ROLL OUT and the $200 credit will be a limited time offer! This promo is coming out of their advertising budget. They are releasing the boxes exclusively through Best Buy and are currently (As of 10PM 8/22/2008) IN STOCK or IN TRANSIT to 10 Best Buy locations in ATLANTA. :D

    This is THE ONLY OTT BOX TO OFFER 1080P HD content with new releases available at 12:01 AM the day of release! (Before the retail stores even open!) It is also the only OTT set top box to offer ADULT CONTENT. ;D (All of which can be stored on its internal 250GD harddrive)

    Good Luck to VUDU! Go get a VUDU MX-100 before the promotion ends at the end of the holiday season.
  • Betty Vanderbeek
    The Netflix Roku Box is better, maybe...I think this innovation (at the $100 price point) obviates the need for cable TV. My wife and I switched from Blockbuster to NetFlix/Roku and cancelled our cable TV. Roku needs to offer adult videos too! Otherwise the Vudu box is worth the extra money, and may win just like VHS beat Betamax. It would be nice for us to get our adult stuff from SugarDVD.com via Roku instead of the postman!
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