Digital Media

Lots of options already exist for getting video-on-demand via the Web.

(Credit: CNET)

The economy is in the toilet, and I know I'm not the only person in America who is looking for ways to cut costs. Top on my list in 2009 is finding a way to eliminate my $100 a month cable TV bill.

Up until very recently, the idea of cutting off subscription TV would have meant skimping on a whole lot of good quality entertainment. I must admit, I don't watch a lot of TV. But I watch enough that I would be very sad if I had to give up HBO's "Flight of the Conchords" or NBC's "30 Rock."

But thanks to that wonderful communications network known as the Internet and the fact that big Hollywood studios and TV networks have finally realized that digital distribution is actually a good thing, cable cord cutters, like me, won't have to sacrifice that much or anything at all, depending on what movies and TV programs we like to watch.

Thanks to services like Netflix, iTunes, and Amazon On Demand, consumers can simply stream or download movies or previous seasons of TV shows directly from the Web anytime they want. And for those viewers looking for current seasons of TV shows, they can turn to Web sites, such as Hulu.com or TV.com, which have aggregated some of the most popular TV shows for on-demand viewing over the Net. (Disclosure: CNET and TV.com are properties of CBS Interactive.)

(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?

Set-top maker gets a new CFO amid a reorg.

(Credit: Vudu)

Only 16 months ago, Vudu, the maker of a movie-playing set-top box, was generating splashy headlines in publications like The New York Times.

Now the company, which bills itself as a video store in a box, is at the center of speculation about layoffs and executive upheaval.

Last week, CE Pro reported that the company had reduced staff by nearly 20 percent, or about 16 to 18 employees out of 100.

A Vudu representative confirmed via e-mail that the company had reduced staffing but declined to discuss figures. Vudu "had to restructure a bit from each department" the representative wrote. "The restructuring is all part of the company reorg to focus more on sales and distribution."

On Monday, Vudu announced that it named Chris Watts, a former eBay executive, as the company's new chief financial officer. What happened to the old CFO? You guessed it: "The former CFO left for personal reasons," according to the representative. CE Pro also reported that one of the company's founders has left the company. Vudu denied that either of it's two founders have left.

Chris Albrecht of NewTeeVee pointed out that some of the company's most recent moves, which includes adding pornography and a 99-cent bargain bin "don't exactly scream stability."

Meanwhile, the number of set-top boxes that transfer movies from the Web to consumers' TVs has exploded. Amid all the growth, Vudu has become an also-ran.

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.