Another Video Store 'Killer' Released

A company called Vudu (very Web 2.0) wants to be your in-home video store with their new set-top device. Don't we already have in-home video stores with Netflix and Blockbuster Online?
This thing is going to face the same challenges all the set-top boxes that have come before have. AppleTV, Moviebeam, Xbox Marketplace, DirecTV PPV, etc. all face a number of hurdles to consumer acceptance. Movie title availability is important, online services usually only have content from some studios and not others. Bandwidth will be an issue, this device seems to need at least cable modem speeds to even work. Pricing of your device is important, $400 is a lot for a dedicated device that basically delivers the same thing your DVD player does.
People also like a physical item when we are talking about movies. While electronic music distribution has gained a lot of acceptance, that's not the case with movies. People like to hold a movie in their hand, keep it in a case, and put it on a shelf. Until the vast majority of people are no longer attached to packaged media (that day may very well come) we will have it in some form.
Don't get me wrong, some of the technical aspects of how Vudu works is very interesting. But I think it will be received by consumers with a collective yawn.

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