Vudu made a couple of CES announcements…

Since their $399 movie download STB isn’t quite expensive enough, Vudu has introduced a higher priced model at $999 - offering only increased storage. From a business perspective, I get it - hard drives are cheap and “Vudu XL” margins will be much higher than the base Vudu model. However, from a marketing standpoint, I’m not sure this sends the right message. Especially with Netflix announcing unlimited movie downloads today, Apple expected to introduce movie rentals tomorrow (including Apple TV playback), and Comcast’s Project Infinity which should quadruple their VOD offerings this year. The need for a larger hard drive also emphasizes a limitation in Vudu’s licensing terms… Purchased (as opposed to rented) movies cannot be deleted and re-downloaded at a later date (as Amazon Unbox allows).

Having said that, the Vudu interface and selection are still better than most. As is the physical design. Vudu also announced they’d be offering more HD content - 70 titles by the end of the month. With a 4Mbps connection, playback will be instantaneous. I haven’t always been pleased with Comcast TV service and technicians, but my Internet connectivity has been outstanding - so I’ll report back later this month on Vudu’s HD offerings.