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)