Vudu Caters to Channel with IPTV Products, Strategies

Channel Strategies

Vudu's biggest play is in the mass market. It has to be, or else the company couldn't seal deals with the studios.

Its key product is the $295 Vudu box, sold online and through Best Buy, Magnolia and other retailers

Recently the company added the higher end, channel-only Vudu XL, a 1TB box that retails for about $1,000 (with a healthy margin for integrators).

"We believe there a channel at the high end that needs its own set of products," Cosson says.

He should know. Formerly, he worked at Slim Devices (purchased by Logitech), which produced the popular SqueezeBox music distribution device for the mass market. At Slim Devices, Cosson's team worked on the much-higher-end, channel-only answer to SqueezeBox, the Transporter.

"This [Vudu XL] is our Transporter," he says.

In addition to its larger hard drive (1 TB can hold about 500 movies in standard def), the Vudu XL has more integration options than its lower-end counterpart.

While IR is now supported on both platforms (via an RF-to-IR dongle), two-way IP communications is only available on the XL.

At EHX, Vudu announced that Control4, Crestron and NetStreams have integrated the XL's IP protocols into their controllers. (Logitech, Philips, UEI and URC have incorporated Vudu's IR codes.)

The two-way integration sets Vudu apart from its competitors, particularly Apple. "IP control is important for this category," Cosson says. "It's something that Apple won't do."

Channel Response

Vudu has established a rep network for the channel -- the same folks that are representing typical custom-oriented lines.

Vudu couldn't be happier with the response it has received so far from the channel. Cosson says the channel "needs an answer to Apple TV."

He relates tales from dealers whose customers ask for Apple TV, "so now they're able to give them another solution."

Still, it's a whole new paradigm for home systems integrators who shudder at the notion of less-than-perfect digital delivery.

Then again, Cosson points out, dealers have learned to thrive on digital audio distribution, so video streaming should be an easy enough leap.

Functions for the Future?

There are many things that the Vudu box cannot do. For example, all content must come from Vudu's service.

You cannot transfer your own movies to the box. At least, "not right now," Cosson says. "We're adding new features every month. We have a very long road map."

Also, "not at this time" is support for multiroom distribution, networking with PCs, and integrating with network attached storage devices.

I have a funny feeling we'll see these features in the future.

And of course, Vudu's content library (like its competitors') is still being built, and there are a lot of popular titles (like the Godfather) that you won't find there.

Still, Cosson says, "People have so much pent-up energy for digital distribution….If the attitude is that this will supplement my experience, then it will be very successful."