Regardless of your feelings regarding the VUDU set-top-box, it's hard to knock its intrigue. From inception, we've been hooked on the concept, and while we've had our reservations about it, our hopes were bolstered after checking it out at CEDIA. After release, a number of reviewers found the device to be interesting, relatively useful and unfortunately hamstrung, but we still see quite a bit of promise in the box.

In its current form, there's no denying that the limitations are stifling. Right out of the box, you're stuck with a smallish internal hard drive that fills up quickly if you prefer your material in high-definition, and even if you look to external HDDs to catch the overflow, you're still left with content that's hardly portable. Sure, the port selection is up to snuff, the interface is beyond acceptable and the design is at least moderately sexy, but the inability to transfer content to discs along with the relatively high prices of downloadable media really put a damper on things. Couple that with the expansion of HD VOD and it's easy to slip your $399 right back where it came from. Still, we're curious to see how you all would tweak the VUDU to make it a more formidable competitor. Granted, we've all ideas that the majority of the changes will involve a massive overhaul of DRM in general, but don't be scared to think outside of the proverbial box on this one.

It ain't announced until it's announced, but the same Lionsgate CEO (Jon Feltheimer) that confirmed iTunes movie downloads was apparently on a call with analysts yesterday and divulged that his business has "nearly a dozen active agreements in place for digital delivery of our content with such major players as Apple, Amazon, Microsoft, Blockbuster, Best Buy, and Wal-Mart, with more to follow." (Emphasis ours.) Not a huge surprise, being that Blockbuster is already fighting tooth and nail with Netflix, and downloads are a natural progression for Best Buy's retail services -- so unless this guy is sorely mistaken about his company's prospects, keep an eye out for Blockbuster and Best Buy to get even further into the online media game.

While it's unclear how long it'll be able to keep it up, Apple looks to be making iTunes Movie Store announcements a monthly occurrence for the time being, following up January's news of a deal with Paramount with word of Lionsgate joining its ranks this month. That means that starting this month you'll be able to snag Total Recall, Terminator 2, and other movies that may or may not star future governors of California for $9.99 apiece (for the most part), currently playable in iTunes or on your iPod, and soon to be streamable to your Apple TV. All told, some 150 of Lionsgate's movies are set to be ready for download by the end of the month -- yes, that includes Rambo. Of course, this news doesn't exactly come as a surprise, given that none other Lionsgate's CEO Jon Feltheimer confirmed that the company would be offering iTunes downloads last year. No word on what's taken them so long.

[Thanks, Adam W]

Just as online music stores introduced the "rental" model to music listeners, it looks like we're finally getting beyond the rent / purchase model for online movies, with Netflix mixing things up with its new Watch Now feature. A user gets an hour of video watching for every dollar they spend monthly on the service -- a $17.99 subscriber gets 18 free hours of video. There's no concept of buying or renting a movie, instead you just watch what you want to watch, with every minute spent watching each movie counting against your total, but nothing more. This helps users catch the last few minutes of recent rentals they might not have finished, or preview a bit -- or the whole thing -- of a prospective selection. With a good enough connection, the quality apparently approaches DVD, but there aren't any portability options or DVD burning here: it's all browser based and not a whole lot more. The feature is also XP only at the moment, but Netflix hopes to expand to other platforms, including cellphones. Currently there are roughly 1,000 titles available, which Netflix hopes to expand to 5,000 this year. Netflix is live with Watch Now for select customers right now, and will slowly expand to the rest of its subscribers over the next six months. It seems we've been waiting for Netflix to get into this gig for years -- oh wait, we have -- and while it does seem to be taking a bit different angle to the biz, we're glad to have 'em all the same.

Good news, folks: Time Warner (disclosure: our parent company's parent company is owned by Time Warner) is facing a future of "download-to-burn" DVD movies with grim determination, and expects said apocalypse to occur sometime in 2007. Sure, a few services have started offering a some movies here and there, most of which have been late, overpriced and plagued with problems, but it sounds like Time Warner is getting ready to do this thing for reals next year, with that fancy new Wal-Mart download service as a potential partner in such doings. Of course, pioneers like Movielink and CinemaNow can't be really blamed for their failures: most of the problems arose from studios like Time Warner practically forbidding them to provide a decent user experience to those potential criminals customers of theirs. The new word is from none other than Richard Parsons, the chief exec and chairman of Time Warner, who says "I expect we will be in a download-to-burn mode in 2007 -- It will be a part of next year's offerings." We'll be waiting to see how well Time Warner fulfills that promise.

Stephen Speicher contributes The Clicker, an opinion column on entertainment and technology:

Riddle me this -- what do you get when you cross the cost savings of a peer-to-peer network with the stability, reliability, and security of a traditional CDN (Content Delivery Network)? The answer, if one Seattle startup has its way, might just be on-demand DVD-quality video at a fraction of the current cost.

Sitting atop Seattle's famed FX McRory's building in the picturesque Pioneer Square, a group of 15 dedicated employees at GridNetworks is attempting to go where many have ventured but few have succeeded; they're attempting to morph the concept of peer-to-peer into a business.

Last week I sat down with GridNetworks CEO, Jeff Payne, and VP of Sales and Marketing, Bo Wandell, to get the lowdown on their new service. Click on to find out what I gleaned from their vision for Grid.

Our crew out in Japan gave us the 411 on the P-TV video download feature; it seems that all of the content currently being offered on P-TV is anime clips and movie trailers -- nothing full length -- and it's all free. Think of the iTV trailer blade we saw at Apple's last big event. One accesses the P-TV store via the PlayStation browser -- there's no in-system interface (lame) -- wherein users can snag H.264 video to their internal drive or a USB drive. Thankfully, the video is un-DRMed and can be played back on a PC, although it doesn't really matter since it's mostly promo stuff anyway. Apparently there's also an account registration and payment method screen in with a shopping cart interface in the PlayStation Store, so it's entirely possible full-length downloads might happen in the future, a la Xbox Live Video. But for now, it's all about quick clips and trailers, with no option to buy the big content.

It's not exactly an Xbox Live Video killing app here from what we can tell, but it looks like Sony's Japanese broadband unit, So-net, has added content download support in conjunction with PlayStation 3 firmware 1.10. That is to say, if you're a proud owner of a new PS3, you'll be able to acquire digital media over their P-TV service, with video in 720p or even 1080p. Details are still sparse as we're waiting for our Tokyo branch to fill us in, but the 8Mbps H.264 downloads appear restriction free (although we doubt you can actually get them off your PS3). We'll let you know more as we do (like exactly what content this pertains to, prices, IPTV, etc.), but since it's So-net something tells us it could be a little while before digital movie downloads make it to US customers.

[Thanks, Dj NoPantsCuban]

There are wild rumors, and there are interesting rumors, but here's a doozy for ya: Xbox Live could soon start vending HD movie content, according to one freshly minted Wordpress blog (take that for what it's worth). According to Shsibae (huh?), over 1000+ hours of video will make its way onto Live for rental at about $4 a go, or for purchase (at an unstated price). Hard to imagine Xbox 360 doing for PC-free online movie downloads what all the other companies couldn't or haven't (we're looking at you TiVo, Netflix, iTV, etc.), but then again Microsoft did start up with that Xbox Live music video download thing last year. Seriously though, what a coup would that be if Microsoft swooped in to make the Xbox 360 the premier digital content hub -- with or without HD DVD -- right underneath Sony's nose at the eve of their PlayStation 3 launch? We just hope Microsoft would have a larger drive waiting in the wings if this one turns up roses though, our 20GB is already packed to the gills with game demos.

If you can't beat 'em, complain about 'em. That seems to be the mantra of Wal-Mart, and now Target, both mega-retailers who seem to have given up the fight with video download retailers before it begins. The latter of the pair has come public with its objections to movie price schemes, calling them less expensive than DVDs, and busting out the vague threat that Target "would reconsider its investment in the DVD business" if the pricing didn't level out. Somehow, we can't quite muster much sympathy for the whiny retailer, given the fact that the online prices are hardly bargains, the resolution is lower, the special features are non-existent, and the market is still teensy tiny. Walt Disney Co. has apparently pointed most of this out to Target already, and since they've gone ahead with their open letter to the industry, we suppose it didn't do much good. Still, we've got a good feeling about market pressures pushing through full-blown online movie sales at decent prices within, oh, let's say the next decade or two, no matter how much "investment reconsidering" Target does in the meantime.

According to a recent article in Variety, Apple is in early talks with Wal-Mart over a way to get iTunes downloads to finally play nice with the commercial giant. Apple wants to team up with Wal-Mart to get access to the retailer's massive title selection, while Wal-Mart is attempting to gain a foothold (or at least a revenue stream) in the downloadable movie sector; at this point, though, it's unclear how these tense negotiations will affect Wal-Mart's plans to roll its own digital video options. The Hollywood publication also reported that 40 percent of studio DVD sales go through Wal-Mart, which means that both movie studios and the gargantuan retailer need to quickly figure out how to adapt to this whole internet thing (we hear it's getting big nowadays).

We've heard rumblings for a while -- and Wal-Mart's purported intense opposition to the iTunes Movie Store might've had something to do with it as well -- but now the rumors are coming hot and heavy in regards to a movie download store from the retail giant. First off, we have a new job listing from Wal-Mart in regards to a business manager for a digital video division who can sort out "pricing strategies to maximize market share." And then there's a report by CNN Money citing "sources" that say Wal-Mart is hoping to launch in the coming months, and is currently debating pricing structures. (If only they had a business manager who could sort out "pricing strategies to maximize market share.") Wal-Mart is also supposedly considering in-store kiosks, and a deal to allow for a free digital version of a movie with the purchase of a physical DVD, or at least for a few dollars more. Wal-Mart of course wouldn't confirm or deny these report, but dropped some big juicy hints such as: "Our customers want to watch movies and they want to be able to make the choice when and how they want to view them." Right now it looks like a natural move for Wal-Mart, and we sure wouldn't complain if they manage to drive prices down -- as seems to be their way -- but we'll let them and that business manager figure things out for now while we head over to iTunes for a bit of The Princess Diaries.

[Via Techcrunch]

Read - Wal-Mart sets stage for digital action
Read - Wal-Mart moves on digital movie downloads

Somehow we had a feeling CinemaNow wouldn't take the news sitting down with regard to the claims espoused by an anonymous engineer who claims their new pseudo-DRMed download-to-burn DVD service is horribly, fatally flawed, and won't play but in any but the most robust standalone DVD boxes. CinemaNow shot back stating that the service has been "well received by our customers and studios alike," (ah, isn't that the trick?) and that tests had the burned DVDs working on "94 percent of DVD players." Which tests and using what DVD players we don't know, but somehow we don't expect to have that data readily divulged. Guess there's only one way to find out though, right? Download a marginally overpriced flick for about ten bucks, get yourself a spindle of DVD-Rs, and go to town. And while you're at it, howsabout letting us know how it worked out for ya by shouting it out in the comments, yeah?

We have a pretty good idea why it's taking Netflix so long to put the net flicks in, um, Netflix, but it's good to hear they're still working toward internet distributed content. According to a BusinessWeek profile of the company, despite the fact that 'flix boss Reed Hastings "doesn't buy the idea that Web movie downloads will wipe Netflix out," they'll still be launching downloadable content by year's end. We all know their limitations are more Hollywood-political than technical by this point -- this is 2006, remember? -- which is why we're hoping that with their own entertainment group buying exclusive rights to movies left and right, even if they can't sway the studios like CinemaNow or MovieLink, they'll still be able to play the game. Now the real question is will it be fair and flexible DRM, or will it be the typical ridiculous, arcane walled-garden experience we're seeing now? well, with any luck we'll be finding out in 2006.

[Via Zatz Not Funny]