Friday, September 5, 2008

Money & Business

Vudu Offers Movie Downloads to Your TV

Posted November 8, 2007

It's no small irony that file sharing, which Hollywood has feared would eviscerate its business, is behind the impressive performance of Vudu, a new service that legitimately sells commercial flicks across the Internet. Vudu does the best job yet of streaming DVD-quality movies to the TV without a stutter.

But the Vudu box costs a steep $400; plus, its 5,000 movies cost $1 to $20 to buy or rent. The selection also is spotty as studios wrestle with licensing issues and irate retailers who sell DVDs.

Some big retailers, including Netflix, Blockbuster, and even Wal-Mart, meanwhile, are experimenting with their own downloading services. "Vudu's service is in many respects a little better than others," says Kurt Scherf, a market analyst with Parks Associates. But it's risky, he adds, spending hundreds of dollars just to enter a fast-changing bazaar.

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