When I heard yesterday that VUDU was dropping the price of its Internet video set-top box by a third to $295 (from $399), I sent the company's PR person this note:
"I'm going to blog (tomorrow) that VUDU is dropping its price in direct response to the new Apple TV price, unless somebody tells me different. Fair?"
Her reply: "Feel free to blog what you like. VUDU is just trying to give consumers what they want." So much for my snarky first-take on VUDU's price drop. In fact it's a good move by VUDU, and a good thing for us tech buyers.
My first take was right, but a bit of a no-brainer: VUDU is dropping its price because of two things:
Apple TV's 40GB version was $299, but now will sell for $229. The 160 GB version was $399, but now will sell for $329, as Steve Jobs announced recently at Macworld. Feature-wise, Jobs said, Apple TV now accesses movie content for instant-on play from all the major Hollywood studios (like VUDU), has added TV shows (like VUDU), and will handle HD content (like VUDU). On paper, the two services are fairly equal.
That said, the price cut keeps VUDU in the game against Apple TV in the marketplace. And it is a formidable competitor. By all accounts, VUDU's download speeds, video quality and show selection are pretty impressive. Also, the VUDU box stores a lot more video, since it ships with a 250GB hard drive inside. So while VUDU hasn't exactly become a household name since its launch last year, it might be able to ride the wave if Apple TV takes off. "A rising tide raises all ships," as some old guy once said.
