A little over fifty days after Vudu launched its set-top movie box and download service (see our review), the company has slashed the price of its hardware from $399 to $250.

Will the price cut give Vudu a much needed boost in the face of increasing competition? I’m not so sure. But it’s a start.

The company still faces a real challenge in persuading consumers to pony up the cash needed to buy the Vudu box in the first place, on top of renting the movies themselves. Instead, Vudu should bundle a number of rentals free with every box purchased. Or better still, turn Vudu into a subscription service similar to Netflix, with a minimum contract — say twelve months — and give the box away for free.

Under its existing business model, Vudu will find it hard to compete with similar offerings such as Tivo’s version of Amazon UnBox (which just added progressive downloads), as well as Microsoft’s XBox 360 and the AppleTV. All of which offer a way of getting premium online video content onto a television, as one of a broad range of features. And that’s before we mention the rumored set-top box from Netflix.

In more Vudu-related news, the company has signed a deal with broadband provider Greenfield Communications, who will resell and install boxes to customers in Southern California and Arizona.

(via Zatz Not Funny)

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Other posts that may be of interest

• Vudu “slashes” price again (sort of)
• Vudu is still trying to get our attention, this time with Jason Bourne
• Vudu introduces arrival of HD movies and a new XL set-top box
• MovieBeam closes. Bad news for Vudu, AppleTV?
• Vudu’s new movie box is still just another set-top box
• Netflix to steal Vudu’s set-top magic?

This entry was posted on Thursday, October 25th, 2007 at 10:07 am and is filed under Net TV. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.