Double toil and trouble, VUDU rumor pot bubbles over

With apologies to Shakespeare, something is brewing at VUDU. With CEDIA just around the corner, the company has laid off some of its staff, most notably some of its marketing higher-ups. Additionally, rumors are swirling regarding just about every aspect of the upstart company's future. CEPro got some talk-time with the VUDU's national dealer channel manager, and a theme of decreased emphasis on the retail channel seems to run throughout the conversation, punctuated by a end-of-life status on the VUDU X100. Meanwhile, the company is making some CEDIA promises for its custom-install-targeted VUDU XL: more HD content (1,000 titles), more connectivity (HD over component) and lifetime warranties on purchased titles. It's all rumor, but we wouldn't be surprised to see VUDU move exclusively into the custom-install market where it seems to have a toe-hold. So what say ye -- is something rotten in VUDU, or should we hang up the codpiece and get back to work?

[Image courtesy Blog of Wishes]

Read - CEPro's VUDU interview
Read - VUDU CEDIA plans

[wazzupalex @ Aug 24th 2008 8:22AM]

As someone who has been studying the 'set top box' concept and market since the 1970s (no kidding), it will be tragic if VUDO fail. a) Their technology (P2P) is the future and brilliantly executed. b) Their product, like Apple TV, will eventually become mainstream as content and additional features arrive. c) If they do fail, another company will no doubt make it work simply because their timing is closer to the tipping point for on demand digital everything. I actually wrote to VUDU to congratulate them on such a remarkable piece of technology. (Their box does not simply stream video of a server. It is effectively a legally binding bit torrent box.) SO, DU U DU VUDU?

[Fanfoot @ Aug 25th 2008 12:13AM]

If you've been studying this for so long, I would have thought you'd have figured out the obvious--that people won't pay for a box whose only function is to let them pay more to watch movies. For the moment, I assume that unless your box does other things--playing music, photos, games, whatever, the reality that your cable or satellite provider (which you almost certainly already have) offers you a box that does VOD for free makes this market difficult. Perhaps when/if over-the-top is seen as a viable alternative to cable/satellite then something like this might have a chance, but until then...

[cy21 @ Aug 24th 2008 8:58AM]

this is the most usefull comment i found on this site so far...

[Justin @ Aug 24th 2008 8:57AM]

The double should be doubled, methinks. Unless the Olsen Twins lied to me, of course...

[Dave @ Aug 24th 2008 9:10AM]

I was in the market for one of these boxes, either a Vudu box or an AppleTV. It was something as basic as the built-in Wi-Fi that made me go with the Apple product which I now love and use frequently.

[Joe @ Aug 24th 2008 9:54AM]

Goodbye VUDU! I hardly knew ye.



Seriously. What the fuck are you?

[Rob @ Aug 24th 2008 10:24AM]

I think Vudu is very promising. However, the entry fee is a bit high. It costs more than an Xbox 360 and less than a PS3. So, for about the same price, I can get a console that can do much more than the Vudu. Nothing against Vudu, but what is the advantage of owning this box over other choices. I'm curious. I'm not a blind fanboy. But, I'm always welcoming to opinions.

[Jared @ Aug 24th 2008 10:59AM]

Until VOD services receive the new titles as quickly as brick and mortar stores, you will continually see these services fall by the wayside. I have used MovieBeam (disaster) and currently use VUDU but when RedBox DVD's have the same release dates as VUDU but only cost $1.49...why would I use VUDU. Bring me the content when its released on DVD not when the bell curve of rentals has reached its peak!!

[Pacey @ Aug 24th 2008 11:41AM]

I actually just recently started looking at the VUDU XL to replace the now discontinued Sony 777ES 400 DVD changer. Starting point is the same price (roughly) and from what i understand the XL allows you to rip your DVDs to its HDD for playback. Problem is, I already have an AppleTV, so i dont really need it for the VOD content.

Even though I was willing to drop a grand on the 777 (mostly because of its mechanical parts that for some reason justified the price in my mind), something like the VUDU XL coming in at a grand causes some sticker shock, especially since its basically the AppleTV with a 1 TB drive in it.

To me, the principle is fine, the delivery and content are fine, but the price is too high.

[Dinich @ Aug 24th 2008 2:20PM]

Actually, AFAIK you can't rip DVDs to an XL yet. The only other service I know of which lets you do that is Kaleidescape, and that system costs quite a bit more than $1000.

[Pacey @ Aug 24th 2008 5:40PM]

Ah, you're correct, i Misread the website and assumed that the 500 standard def DVDs were ones I already owned. Glad I hadnt bought it yet.

I got to see the Kaleidscape at CEDIA last year. Amazing product, your correct... and at a cost of only 10X the Vudu XL :p

[MadMike @ Aug 24th 2008 12:14PM]

VUDU is promising but with the internet providers killing our bandwidth to stop the competition with their VOD services and the fact that VUDU doesn't offer enough HD content - it was poorly executed.

Of course, big content would never let them offer HD over Component because that would allow for PIRACY. ZOMG, THOSE EVIL PIRATES WILL STEAL OUR DOCUMENTARY ON SINGING CHIHUAHUAS!!!!! OMG - WE HAF TO STOP ZEM! BRING IN THE OVERLOADING DRM PLZ!

Bah.... Miro & TVRss FTW!

[cliff @ Aug 24th 2008 12:33PM]

I didn't like their website.. I have really bad ADD and their website couldn't explain to me in less than 30 seconds what their product does (Hello, video tutorial is your friend). This indicates to me that they're out of touch with their target market, as well does the price.
I'm not a big apple Fanboi, but I can say one thing apple does well is convey their products abilities on their site. Everything has a video walk through. I like show and tell --- not read.

[mikejonas @ Aug 24th 2008 12:50PM]

With Apple, Microsoft, and Sony already on their turf and offering much more on top of movie downloads, (podcasts, games, Blu-Ray, YouTube, streaming from the computer), I'm not surprised that Vudu is struggling; the only things they have over the other guys are 1080p and porn.

[MadMike @ Aug 24th 2008 12:55PM]

Sometimes 1080p and porn are all you need! :-)

[BowserUSC @ Aug 24th 2008 1:01PM]

hang up the codpiece and get back to work

[h0mi @ Aug 24th 2008 1:13PM]

At best buy last week I saw a big display of the Vudu system- it looked like Best Buy was making an effort in promoting these things. So if VUDU is going to bite the dust soon, that would be strange, given the higher profile it has at at least 1 retailer.

[mikejonas @ Aug 24th 2008 2:01PM]

Best Buy has been pushing Vudu for several months now, at least in my locality. These rumors of trouble are a lot more recent, and don't necessarily have an immediate affect on the Best Buy promotion deal.

[mikejonas @ Aug 24th 2008 2:03PM]

Holy crap, did I just make the affect/effect blunder? I can't believe that...I *never* do that.

[VuduPatrick @ Aug 24th 2008 2:39PM]

Yes, we did lay off a few people as part of a restructuring and refocusing of our efforts. We were all sad to see some excellent coworkers and friends leave. Unfortunately it's something that happens from time to time in the life of a start-up. The company and service are intact and moving forward quickly. In fact, we're still hiring for a number of positions (http://www.vudu.com/aboutus_jobs.html). Also, the 250GB X100 VUDU Box has not been EOL'd, it still available at Best Buy, direct at VUDU.com and through other retailers. It is simply being removed from the custom installation (high-end) market where we have the XL product.

Oh and Pacey, sorry to say, neither of our products support ripping DVDs.

Patrick Ellis
Sr Product Manager, VUDU
www.vudu.com

[rony @ Aug 24th 2008 3:22PM]

and here was me thinking that a really cool looking cauldron was on sale.......

[fordstang93 @ Aug 25th 2008 10:54PM]

I think i would be a good idea to go that route into the custom integration market. I work in the custom home theater house automation field. VUDU is already working with some control systems with IP control. NO RS 232, NO RF, NO IR. Integrating multiple VUDU boxes and a matrix switch is the ultimate solution for movie distribution cost-wise compared to a Kaleidescape. I know that they are different, renting/buying movies vs. ripping movies you own. But as everyone is seeing more and more online music services are becoming the popular norm. All music distribution systems now incorporate some sort of music service like sirus, xm, rhapsody, pandora... It is just a matter of time before this happens in movies.

[j.o. @ Aug 26th 2008 7:30PM]

As usual the Engadget wanna be journalist hacks get it wrong. You guys never learn do you.