Vudu on Monday slashed the price of its TV set-top box in half.
The price cut brings the Vudu HD movie rental box down to $150 — about $80 less than its major rival, the Apple TV.
Vudu launched its set-top TV box for $400 in September 2007, and just four months later the price dropped to $300. The company’s EVP of strategy Edward Lichty said the "reaping awards of success in the retail channel over the holidays, lower component prices and higher movie revenues" enabled Vudu to reduce the price.
However, Vudu declined to provide sales numbers to substantiate its success. And Wired.com finds the claim dubious, as we believe the price cut has more to do with competing with Apple than high sales. The price cut appears long overdue, as Apple TV dropped from $300 to $230 in January 2008.
When Vudu launched in 2008, Forrester analyst James McQuivey said he was skeptical that the start-up could compete with Apple. He noted that Apple was at an advantage because it already has an established customer base in the iTunes Store.
However, Vudu argued that it was well positioned to compete with Apple, citing a larger collection of titles. The Vudu offers about 5,000 movies for rental. Apple TV’s library only holds about 1,500 movies. (Despite our skepticism in Vudu’s success, Wired.com has given the set-top box positive reviews.)
Pricing of Vudu’s content remains the same. For example, standard definition rentals range from $1 to $4; high-definition rentals cost between $4 and $6.
Product Page [Vudu] (Thanks, Erika!)
See Also:
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- Vudu Software Update Adds More HD Content
- New Vudu Comes on The Scene With a Big Rack
- Vudu Box Comes Down in Price to $300, Gets Ready to Fight Apple TV
- Is Vudu a Dead Man Walking?
- VUDU Box Set To Bring Movies Direct To Your TV
- Wired Test 2007: Best of Test, Cine Sinners Beware of the Easy …
Photo: Tom Schierlitz