Digital Media

(Credit: Vudu)

Most video-on-demand set-top boxes let users rent or buy downloadable movies. But high-definition movies have been rental-only, thanks to limitations from the movie studios that own the content. But owners of Vudu's on-demand box will now be able to buy a limited selection of HD movies from independent studios Firstlook, Magnolia, and Kino.

The initial roster of 50 high-def movies includes such titles as "Transsiberian" and the Oscar-winning "Man on Wire," and they'll be offered simultaneously with the DVD releases. (Viewers can opt to buy either the "instant HD" or the much more impressive HDX version of the movie, and rentals will still be available.)

Vudu is hoping that these niche offerings will pave the way for the major studios to flip the switch on HD purchases of their more mainstream fare at some point in the future.

What does it mean? The HD movie purchases offers Vudu another nice bragging right in its competition with Apple TV, but little more.

On a personal note, after building up significant VHS and then DVD movie libraries, I've moved to an almost entirely all-rental model in my viewing habits, so buying downloadable movies doesn't appeal to me--even if Vudu can get the bigger studios to sign onto this plan. And if I did want to invest in a keeper, I'm still going to feel more comfortable with Blu-ray Discs than with having movies locked into a proprietary hard-drive format.

But that's just my opinion. I'm still a Vudu fan, thanks to the excellent video quality of its HDX movies and the breadth of its 1,400-strong HD movie library. I'm just happy sticking with rentals.

What do you guys think?

Some owners of Microsoft's Xbox 360 who have signed up to receive movies via Netflix's streaming movie service have seen the same loss of video quality as owners of Roku's Netflix Player.

A mysterious glitch has been hobbling video streams distributed by the two set-top boxes for at least two weeks, said a source close to Netflix on Thursday. The problem is the first setback for Netflix's streaming, which has won accolades since the $99 Roku box debuted last spring. Microsoft, LG Electronics, and Samsung followed with their own set-top boxes featuring Netflix's service. Microsoft did not respond to an interview request.

Those affected by the problem have been frustrated by long delays before a movie is playable and "unwatchable," according to one Roku box owner. Steve Swasey, Netflix's spokesman confirmed the company is working on a fix but declined to discuss which set-top boxes have seen a drop-off in video quality. He said the glitch is affecting a relatively small number of Netflix users.

"We can't stress highly enough that we want everyone's experience to be the best it can be," Swasey said. "We've seen the (complaints on the message boards). It's a small number of people involved but we don't want to diminish the fact that's it important."

The malfunction has apparently stumped Netflix and Roku engineers for weeks. Roku, which counts Netflix as one of its financial backers, asked those affected by the problem to post information on the company's forums that could help the company pinpoint the problem, such as their ISP, what kind of connection speeds they typically get, and what part of the country they live in.

Earlier this week Roku posted a message on the forum asking any San Francisco Bay Area residents having problems whether they would mind letting engineers poke around their system for clues. Netflix has also been working hard on the problem, Swasey said.

"We're doing all of the analysis we can," Swasey said. "We're looking at region, at carriers...we're working diligently to identify the problem. Until we have, we certainly don't want to speculate at all. Look, there's no manual to take off the shelf here. Netflix has created something new here."

Delivering full-length movies over the Web is extremely complicated and has always been plagued with long download times or fuzzy streams. But Netflix is also competing with itself here. The streaming service was free of these kinds of quality issues for six months. Why are they cropping up now?

A Roku executive told me earlier this week that the problems coincided with changes Netflix was making with its content distribution network (CDN). It may be a coincidence but about the same time Roku customers began seeing problems with video quality, some Apple TV owners began complaining on the company's message board about long delays downloading movies.

The Netflix Player by Roku

(Credit: CNET Networks)

Some Apple TV owners have complained for several weeks that it takes much longer now to download and playback high-definition movies.

"I started downloading an hour back and it says it will take two hours," wrote someone with the user name Reachg. "It's already 25 percent downloaded but it's not letting me play. In the past I was able to play the movie in 10 minutes max...seems something is happening."

The complaints at Apple's forums first appeared on November 14. That was the day after Roku, maker of the Netflix Player, notified customers it had received complaints from some device owners about a marked drop-off in quality of their streaming video. The Netflix Player and Apple TV are set-top boxes that enable owners to watch Web video on TV sets.

What we have here are two set-top boxes that almost simultaneously experience dramatically reduced streaming quality in the case of the Netflix Player, and longer download times in the case of Apple TV. Coincidence?

It's possible but it's worth digging a little to see whether the two cases are connected. A Roku executive told me on Monday that the problems with the company's box occurred at about the same time Netflix was making changes to its content distribution network (CDN).

Steve Swasey, Netflix spokesman declined to comment, citing the company's policy of not discussing vendors. (Apple also declined to comment.) But sources close to Netflix said the Web's top movie-rental service uses multiple CDN companies, including Akamai and Limelight Networks.

Akamai also delivers much of Apple's video content for iTunes. Jeff Young, an Akamai spokesman, said the company's isn't to blame, at least for Netflix's problems. He acknowledged that Akamai performs some services for Netflix, but they don't include anything having to do with the company's streaming video service. Netflix's streaming service is now offered on multiple devices, including Microsoft's Xbox 360.

Young said Akamai executives had not been informed about any problems at Apple TV and were looking into the problem.

I was told by an industry source that it's easy to blame Akamai and CDNs for these kind of problems, but often the glitches are the result of a company's own servers or other back-end infrastructure. The one thing that's crystal clear is none of the companies are providing customers with much information and are very tight-lipped about what they know.

On Roku's message board, several Netflix customers ask why the company hasn't notified them that there's a problem.

The 99-cent offerings include a good assortment of worthwhile movies--including some recent hits.

(Credit: Vudu)

One of the biggest beefs with the Internet video-on-demand services offered on the Apple TV, Vudu, TiVo (via Amazon Unbox), and Xbox 360 is that the movies are just too expensive--usually around $4 for new movies, $5 to $6 for HD films, and a bit less for older "catalog" releases.

Watch just five or six movies a month, and you can easily rack up a $30 charge--not very appealing compared with Netflix's all-you-can-eat pricing plans.

But Vudu took a step in the right direction Wednesday with its new "99 for 99 cents" section, which will offer a rotating list of films for just under a buck. Even better, the initial list--already available on Vudu's Web site--isn't crammed full of the usual sort of dreck you see on such virtual bargain tables.

In addition to some older favorites (Animal House, Groundhog Day, Austin Powers, Chinatown, The Big Lebowski, and many of the Star Trek and Jack Ryan movies), you'll also find recent hits such as I Am Legend and Cloverfield. Not bad at all--though it's worth noting that all of these are in standard-def, not HD. Vudu's also extending its recent "renewal" policy, which lets people rewatch movies they've already purchased in the past seven days (99 cents for standard-def reruns, $1.99 for HD).

Remember that nearly all of the pricing and viewing limitations--such as the fact that rentals must be watched within 30 days of downloading, and within 24 hours of first clicking "play"--are imposed by the Hollywood studios that own the films (rather than the hardware makers). To that end, it'll be interesting to see whether Vudu's rivals begin offering a similar discount tier. In the meantime, though, Vudu's got a another distinguishing feature over its competition.