Cost of Vudu

[Wineaux]

Re: Cost of Vudu

I want free HDX. On all new movies. Oh, and on movies still in the theater too. And I don't want to have to use the UI to find it...I want to have it start streaming as soon as I concentrate on the name of the title.

Sheesh! Let's pour on a couple 50 gallon drums of hyperbole here. None of us have EVER stated that we expected Vudu HDX to be free. EVER. What we have stated is that it is priced too high for normal use. Cut the cost by $2-4, depending upon the age of the content, and we're in the ballpark. At those prices I'd use the service pretty regularly. In fact, I'd bet a whole lot more people would make use of Vudu as well.

In sales, there is a sweet spot that a business needs to find when pricing their product. The extremes are streaming a movie for a penny, or streaming a movie for a million dollars. The first would of course increase business massively, but Vudu would never be able to pay their bills using that model. Conversely, all Vudu would need to do is stream one movie for a million dollars to stay in the black, but it's not likely that they'll get many takers at that price point. So the trick is to find the price point(s) that will bring in the most customers and still make money.

What we have been saying in this thread is that Vudu hasn't found that sweet spot yet. They're close, but they need to get their pricing down just a little bit more to bring in a lot more paying customers. Three or four years ago these price points may have made sense, but not now. As a previous poster noted, it doesn't cost me that much more to go to the theatre instead of streaming a movie from Vudu in HDX ($8-10 where I live, and less for a matinee.), as an individual, and the experience is much more compelling. However, the cost differential is different if you're talking about taking a family to the movies.

Please feel free to respond, but how about we leave out the histrionics, hyperbole, and bad analogies. OK?

[canadien37]

Re: Cost of Vudu

Sheesh! Let's pour on a couple 50 gallon drums of hyperbole here. None of us have EVER stated that we expected Vudu HDX to be free. EVER. What we have stated is that it is priced too high for normal use. Cut the cost by $2-4, depending upon the age of the content, and we're in the ballpark. At those prices I'd use the service pretty regularly. In fact, I'd bet a whole lot more people would make use of Vudu as well.

In sales, there is a sweet spot that a business needs to find when pricing their product. The extremes are streaming a movie for a penny, or streaming a movie for a million dollars. The first would of course increase business massively, but Vudu would never be able to pay their bills using that model. Conversely, all Vudu would need to do is stream one movie for a million dollars to stay in the black, but it's not likely that they'll get many takers at that price point. So the trick is to find the price point(s) that will bring in the most customers and still make money.

What we have been saying in this thread is that Vudu hasn't found that sweet spot yet. They're close, but they need to get their pricing down just a little bit more to bring in a lot more paying customers. Three or four years ago these price points may have made sense, but not now. As a previous poster noted, it doesn't cost me that much more to go to the theatre instead of streaming a movie from Vudu in HDX ($8-10 where I live, and less for a matinee.), as an individual, and the experience is much more compelling. However, the cost differential is different if you're talking about taking a family to the movies.

Please feel free to respond, but how about we leave out the histrionics, hyperbole, and bad analogies. OK?

I tend to agree with raaurora's take......there are a lot of people out there that want something for nothing.....That said, I have been a VUDU customer for a long time, and think the pricing is appropriate for HDX titles, particularly new releases....I am primarily a purchaser of movies, and VUDU is my source...Through the years, I have seen many a sale through the service with incredible prices, I bought a lot of my films during this time....

As I do not rent a lot, maybe the studios do not see as much profit in rentals as sales....The $2 for 2 nights promotion going on right now is a deal....Bottom line no content provider can make everyone 100% happy, but over the years, IMO VUDU has made some major strides in the VOD/Electronic sell-thru space.....Let's not forget the studios set the rules on pricing and availability of their content, perhaps in the future VUDU/ Walmart can negotiate better pricing.....Right now, HDX is the cream of the crop in quality, it deserves a premium.......

[aaronwt]

Re: Cost of Vudu

Plus how many other providers give you the option of watching the 720P version for $1 less? Typically you pay the same price for the 1080P or 720P version. For the providers that offer two HD resolutions.

[canadien37]

Re: Cost of Vudu

+1

[raaurora]

Re: Cost of Vudu

So does this mean no free HDX movies?

I guess I don't see the point of some of the posts here. If you don't buy into the VOD pricing model, don't buy VOD. Stick with Redbox, Blockbuster kiosks, or whatever. But expecting HD and HDX VOD's to be priced the same as physical disks - of limited inventory, selection, requiring pickup, drop off, etc. is just not realistic.

I prefer VOD as I only watch a movie or two a month. If people prefer Rebox go for it. But some of the rambling posts in this thread just don't make a lot of sense to me, other than to call out the writer's have not thought thru the pros and cons of each model.

[canadien37]

Re: Cost of Vudu

+2, your other post was hilarious!!

[steelersrule]

Re: Cost of Vudu

After reading through this whole thread, I must concur with most people that the pricing IS A LITTLE TOO HIGH.

****OFF TOPIC****
It is on PAR with other services, but they are too high as well. CINEMANOW, $1.99/episode of a TV show?! Go drop dead!! .49 cents to .99 cents MAX. Oh, and also try to make a whole SEASON available to those of us who want it on a Device, and not just a computer, and discount it for buying the whole season. Won't see a dime of my money because of this.

****BACK ON TOPIC****

I think dropping each HDX and HD rental $1 would go a long way to getting more people on board IMHO.

And SD rental? 99 cents, period. In this day and age an SD rental, no matter what it is, is not worth what VUDU, or anyone else asks for that matter. But that is open for debate.

Also, adding the ability to add "GIFT CARDS" to ones account would be another great way to help this service grow. Since it is now owned by WalMart, I see this happening, and very soon(before the end of the year at least).

So now giving someone a $5/$20/$50/$100 gift card to add there account without worrying about their CC being used at all would be great. So you can "GIVE THE GIFT OF VUDU" to your friends/family. I think this would help greatly.

But I do agree with most, that the prices should be dropped. At least a little.

[Corriec67]

Re: Cost of Vudu

Full disclosure: new Vudu user - just used free movie credit. FYI - I may be redundant as all of the pertinent issues have pretty much been fully discussed. Nevertheless, I will share my initial experience and impressions.

The way I see this "cost" issue comes down to three main topics; availability, price and quality. I specifically used the word "price," because the word "cost" implicitly involves more issues (ie. price, convenience, travel...) and the word "value" basically lumps the three aforemention topics together.

My wife and I both really enjoy movie-going and watching movies. Movie-going gets expensive and we had a positive experience w/ Netflix (via mail) for many months in the summer of '09. We recently upgrade to an HD TV; then TiVo Premiere (HD) - which streams AVOD, Netfix, Blockbuster, Pandora among others; and now Blu-Ray (LG-BD570) - which adds the Vudu service among others. I purposely choose the LG because Vudu would compliment the other services.

As far as streaming is concerned, Vudu advertises the most SD and HD movies and by all accounts I found that to be the case. Hence, Vudu has superior availability. Unless you include physical DVDs, then Netflix may have a larger library. I may be mistaken here, but that's beside the point as now the conversation moves to a different format, which begins to conflate the issues. My wife and I enjoyed renting from AVOD, but had to wait for the download, not long mind you, but Vudu was instantaneous! If someone could tell me how there is a difference I would love to know, I assumed they were the same technology. (Seriously, please reply - this was the reason I came to the Vudu Forums in the first place.)

In additon to the literal instant streaming was the quality of the HDX, which was outstanding - in fact, incredibly impressive. Not to mention that we could toggle between SD, HD and HDX at anytime to curiously check out the difference. So, we found the Vudu quality to be top rate (sans audio - our new sound system is in transit). Also, we were particularly impressed w/ the interface of Vudu. The icons were nice and the Vudu community ratings and Tomatometer ratings and reviews were awesome and very welcomed. I disagree w/ many of the criticisms of the previous reviewer who commented on the interface's inuitive nature. However, they do need to include a main alphabetical listing among the browsing options.

Lastly is the price, which is ultimately the deal breaker for many consumers. After all, if Vudu had the best quality streaming experience w/ the most titles and at the same price, then Vudu would be the hands down winner and dominate the market. Of course that is not the case. I won't get into the nitty-gritty on the price so as not to be repetitive, but w/ a relatively standard price point of $3.99 (SD), $4.99 (HD), and $5.99 (HDX) per rental Vudu is competing only w/ the theaters and other streaming providers. Vudu can't compete w/ Redbox or Netflix by price for unlimited/heavy viewing users. This is a shame, because we would love to use Vudu all the time. However, as soon as we rent 2 or 3 movies (at ANY resolution) Vudu no longer becomes cost efficient. Can Vudu also tell me why the price point has to be on the dollar instead of any price ($2.25, $2.50, $2.75, etc.)? Can Vudu tell me why they don't also include an unlimited per month pricing option in addition to the per rental pricing - even if it were more expensive? My wife and I would easily spend $10-$16 a month for Vudu over ALL other viewing options even if we only viewed two movies a month.

The bottom line is nobody in this forum or anywhere else can difinitively determine what is best for each particular consumer, because each consumer's variables are different (family size, viewing habits, distances to kiosks/stores, convenience to kiosks/stores, streaming capabilities, etc.). For my wife and I, this will leave Vudu as more of a novelty - to be used once in a while for special occasions (certain movies or maybe get-togethers).

[canadien37]

Re: Cost of Vudu

After reading through this whole thread, I must concur with most people that the pricing IS A LITTLE TOO HIGH.

****OFF TOPIC****
It is on PAR with other services, but they are too high as well. CINEMANOW, $1.99/episode of a TV show?! Go drop dead!! .49 cents to .99 cents MAX. Oh, and also try to make a whole SEASON available to those of us who want it on a Device, and not just a computer, and discount it for buying the whole season. Won't see a dime of my money because of this.

****BACK ON TOPIC****

I think dropping each HDX and HD rental $1 would go a long way to getting more people on board IMHO.

And SD rental? 99 cents, period. In this day and age an SD rental, no matter what it is, is not worth what VUDU, or anyone else asks for that matter. But that is open for debate.

Also, adding the ability to add "GIFT CARDS" to ones account would be another great way to help this service grow. Since it is now owned by WalMart, I see this happening, and very soon(before the end of the year at least).

So now giving someone a $5/$20/$50/$100 gift card to add there account without worrying about their CC being used at all would be great. So you can "GIVE THE GIFT OF VUDU" to your friends/family. I think this would help greatly.

But I do agree with most, that the prices should be dropped. At least a little.

Interesting take, I really like the gift card idea.......A service can't make 100% of the people happy, obviously VUDU's uptake at the current price points must be satisfactory to the studios...If they were to drop the price $1, there will be other people coming out of the woodwork saying THAT amount is too high.....If you have a cheaper source for your films, use them......IMO, VUDU is a premium service that gives you the best VOD experience right now.....You wouldn't tell a BMW dealer his prices are too high, you just won't purchase a car, there is an understanding BMW means quality and demands a premium.....Same here, if VUDU's pricing is too high, you have other options....

Another thing, I think the studios are worried digital distribution will turn into primarily a rental model, which is not what they want....IMO, that's why I think the Ultraviolet initiative is important in order to allow customers to feel secure about OWNING movies digitally, I believe the studios make their money via SALES, not rentals, as I have mentioned in another thread.....

Also,does $2 for 2 nights not fall into the 99 cent realm?

[Wineaux]

Re: Cost of Vudu

So does this mean no free HDX movies?

I guess I don't see the point of some of the posts here. If you don't buy into the VOD pricing model, don't buy VOD. Stick with Redbox, Blockbuster kiosks, or whatever. But expecting HD and HDX VOD's to be priced the same as physical disks - of limited inventory, selection, requiring pickup, drop off, etc. is just not realistic.

I prefer VOD as I only watch a movie or two a month. If people prefer Rebox go for it. But some of the rambling posts in this thread just don't make a lot of sense to me, other than to call out the writer's have not thought thru the pros and cons of each model.

Again, I never once said that I expected that in Vudu's pricing structure. I said that BASED upon the fact that these services were at a certain price point that Vudu's pricing structure needed to be adjusted downwards a little. I don't expect Vudu to set their HDX pricing at $1.50, which is the price of a Redbox BD rental. I did say that older movies that are 10+ years old should probably be priced lower than new releases, but that reducing Vudu's HDX pricing structure on those by a couple of bucks would result in a LOT more new customers, and that increase in new customers would MORE than make up for the reduced rental prices. The idea that the studios are telling Vudu that they must rent HDX movies for $5.99 is also totally ludicrous. They may set a base royalty cost to Vudu, but Vudu is absolutely setting their own pricing. To think otherwise is just silly. Vudu needs to look at a sliding scale for HDX rentals based upon the age of the content. Heck, this is even done at the movie theatres when a movie is moved from the first run theatres to the discount theatres!

What a large number of the posts in this thread seem to be are longtime users of Vudu attempting to justify to themselves how much they are paying for HDX movie rentals.

PS... I also am a firm believer that most VOD pricing is too high. So just stating that some other VOD content is priced similarly doesn't mean all that much to me. If the industry prices are too high, then they are too high. There is most certainly a segment of the population that is willing to pay those higher prices, but my contention is that there is a much larger segment of the population that would rent VOD's if they were just a little bit less expensive, and that the increased rentals would result in a much larger profit and revenue stream for the companies offering VOD movies, as well as the studios, than a smaller base of renters at the current high pricing. This is the "sweet spot" I was talking about earlier.

I'm not looking for something for nothing. I'm looking for something affordable, and at the current pricing structure for HDX movies, Vudu is not.

[canadien37]

Re: Cost of Vudu

Again, I never once said that I expected that in Vudu's pricing structure. I said that BASED upon the fact that these services were at a certain price point that Vudu's pricing structure needed to be adjusted downwards a little. I don't expect Vudu to set their HDX pricing at $1.50, which is the price of a Redbox BD rental. I did say that older movies that are 10+ years old should probably be priced lower than new releases, but that reducing Vudu's HDX pricing structure on those by a couple of bucks would result in a LOT more new customers, and that increase in new customers would MORE than make up for the reduced rental prices. The idea that the studios are telling Vudu that they must rent HDX movies for $5.99 is also totally ludicrous. They may set a base royalty cost to Vudu, but Vudu is absolutely setting their own pricing. To think otherwise is just silly. Vudu needs to look at a sliding scale for HDX rentals based upon the age of the content. Heck, this is even done at the movie theatres when a movie is moved from the first run theatres to the discount theatres!

What a large number of the posts in this thread seem to be are longtime users of Vudu attempting to justify to themselves how much they are paying for HDX movie rentals.

PS... I also am a firm believer that most VOD pricing is too high. So just stating that some other VOD content is priced similarly doesn't mean all that much to me. If the industry prices are too high, then they are too high. There is most certainly a segment of the population that is willing to pay those higher prices, but my contention is that there is a much larger segment of the population that would rent VOD's if they were just a little bit less expensive, and that the increased rentals would result in a much larger profit and revenue stream for the companies offering VOD movies, as well as the studios, than a smaller base of renters at the current high pricing. This is the "sweet spot" I was talking about earlier.

I'm not looking for something for nothing. I'm looking for something affordable, and at the current pricing structure for HDX movies, Vudu is not.

First, there is a reason that VOD providers charge what they do....Some of that DOES have to do with the licensing of films...For instance, VUDU has to obtain licenses for every resolution they offer for rent in addition to separate licensing for each resolution that is for electronic sell-through, that costs money......I, for one, do not have to justify myself in terms of the price I pay for content.....I am as cost-conscious as any consumer out there, however, I am willing to pay a little more for the experience VUDU gives......

In terms of a sliding scale, I don't know how long you have been using the service, but there has been a lower price for films as they get older, look through the catalog, I remember when VUDU first launched, they had HDX movies for sale @27.99!!! talking about outrageous!! Over the years the prices have lowered to the point I have been buying them big time, during some sales they went as low as 11.99!!! and we're talking about HDX here......check out the sales from time to time........That said, if VOD/electronic sell though services are all pricing way above what the market will accept, people will flock to the subscription-type services, then the VOD services will have to compete......It also depends on what the studios want: do rentals or subscriptions bring in the bucks, or do sales of content? Make no mistake, it is the studios that rule the roost, they are the content owners and are maybe concerned about a rental model devaluing their product....if they want to steer the industry toward more sales as opposed to rentals, they will.....

In the physical space sales brought in the bucks, right now the studios are concerned about declining DVD SALES, not rentals or subscriptions.......It will be interesting to see if that same premise holds true in the digital space.....

[kdo01]

Re: Cost of Vudu

If a business doesn't know that something is broken, then they can't fix it. As I stated in my first post, unless I get freebie rental coupons, or find Vudu has special pricing going on, that I'll most likely not use the Vudu service anymore. Letting Vudu know that they are losing me as a potential customer is important for them to know, as the formula is that basically every vocal disgruntled customer speaks for 100 others. There is a lot I like about Vudu, but I can't justify the costs. So if my speaking out here helps get those costs down, then it's a win. My fingers are crossed.

You have hit that nail right on the head!

[GaryInNY]

Re: Cost of Vudu

I'll just add my take:

I bought a Vudu box (back in the BX100 days) because I liked the terms.

Of course everyone would like lower prices, HDX does get pricey if you watch a lot of movies, but the quality is very good.

I like the option of getting top-notch quality when I want it (for some recent films like Avatar, and I've also been surprised at the quality of some old re-released films, like Vertigo and North by Northwest).

I don't watch a lot of movies per month, so the pricing doesn't work out that bad for me. Sometimes, I hardly rent any movies at all, and appreciate that I'm not still paying monthly fees for a service I'm not currently using. Instead, I prefer to pay for only the movies I watch.

My life doesn't consist of watching a movie, driving past a redbox, watching a movie, driving past a redbox... I very much like the convenience of choosing from a large catalog without leaving the house to pickup or return, and without planning far in advance what I'll want to watch or which day I'll have time for a movie (I sometimes choose at the last minute a long or short movie depending on how much time I have that day).

There's other options that may be better for people who want to watch movies every day and don't want to spend a lot, but for me, I like the service pretty much the way it is.