New feature request / Wishlist

[redwein]

Re: New feature request / Wishlist

I get it... we are not watching from the same angle. This is how "I" would play it if were Vudu. Bring the Hulu users in with candy... (Hulu in the Vudu box) This way Hulu users are exposed to Vudu channels with better quality content... If Vudu doesn't have better quality content than Hulu then we should not have been having this conversation in the first place... Hulu content might be free... but Vudu content is better... right? Cable has a similar model. There are the network channels in cable that are free. What is cable selling you? Higher quality content... VOD, VODHD, HBO, Showtime, Cinemax, Premium Package... you name it. Yes, having the "free" networks affects their button line, but they have a captive audience to whom they can sell their pay per view content. The more users that switch to basic cable to view the "free" networks the higher the potential of them buying the higher quality content. For the cable companies (an aggregator) this model has been working for a long time. Some call it free candy some call it... bait and switch.

To some extent this is true but there is a difference between your cable company example and Vudu. With the cable company, the basic channels don't show the same programs as the premium ones. When you pay for the premium channels, you get more content, not just better versions of the free stuff. It's true that you can pay more for HD versions of the network channels but I know a number of people who are "satisfied" with the SD television, when it is clearly inferior to the HD. With Hulu, you can have the same exact movie and it could have close enough (or possibly identical) picture quality to Vudu's SD, but being paid for by commercials. There are people who would forego the paid Vudu content just because the free version is available. They might not mind commercials, for example. In that case, the monetary benefit is derived from the advertising and Vudu loses a purchase or rental.

[tamanaco]

Re: New feature request / Wishlist

Technically, yes, you would be cannibalizing. Now if you do it as a temporary promotion to gain market share, that may make perfect sense. If, however, you set up a free candy bin permanently outside your store that contains candy similar to what you sell inside, many people will start to just take advantage of the free stuff and never make it into your store. That's what I mean by cannibalizing. Your free offering can directly "eat into" your profits. Adding Hulu permanently would be like having a permanent candy bin. Giving away free movies (as Vudu has done with various promotions) is more like the former.

I get it... we are not watching from the same angle. This is how "I" would play it if were Vudu. Bring the Hulu users in with candy... (Hulu in the Vudu box) This way Hulu users are exposed to Vudu channels with better quality content... If Vudu doesn't have better quality content than Hulu then we should not have been having this conversation in the first place... Hulu content might be free... but Vudu content is better... right? Cable has a similar model. There are the network channels in cable that are free. What is cable selling you? Higher quality content... VOD, VODHD, HBO, Showtime, Cinemax, Premium Package... you name it. Yes, having the "free" networks affects their button line, but they have a captive audience to whom they can sell their pay per view content. The more users that switch to basic cable to view the "free" networks the higher the potential of them buying the higher quality content. For the cable companies (an aggregator) this model has been working for a long time. Some call it free candy some call it... bait and switch.

[redwein]

Re: New feature request / Wishlist

For "hour-long" [40-45 minutes] shows, I don't have an issue with the 1.99, but it is a bit much to pay $2 for 20 minutes of content when you could rent a 2-hour movie in the same quality for $1-$4. What I'd like to see is 'half-hour' shows at $.99, hour-long ones at $1.99, and a 'season pass' type of option for a discount on an entire season. The $.99 option is probably unrealistic, but they could at least come down to $1.49--just something that reflects the difference in value.

I agree with you here. It doesn't seem like the value is really there with the half hour shows. What does ATV charge? I hope that Vudu is able to improve this area in the future.

[redwein]

Re: New feature request / Wishlist

I agree to some extend to what you say here. But right now Hulu already has a large user base... Vudu is trying to grow its user. I guess I don't undestand what you mean by cannibalizing? If I own a candy store and give candy away to get folks to my store door... Am I cannibalizing my existing revenue stream?

Technically, yes, you would be cannibalizing. Now if you do it as a temporary promotion to gain market share, that may make perfect sense. If, however, you set up a free candy bin permanently outside your store that contains candy similar to what you sell inside, many people will start to just take advantage of the free stuff and never make it into your store. That's what I mean by cannibalizing. Your free offering can directly "eat into" your profits. Adding Hulu permanently would be like having a permanent candy bin. Giving away free movies (as Vudu has done with various promotions) is more like the former.

[tamanaco]

Re: New feature request / Wishlist

It may turn out in the end that there are other features/channels that Vudu could add that would have a more positive impact on sales of boxes, rental opportunities, etc., where those features wouldn't have the same potential to cannibalize existing rental revenues. Being able to watch already owned content on your own network comes to mind. Analysis of what Vudu should do should factor those things as well.

I agree to some extend to what you say here. But right now Hulu already has a large user base... Vudu is trying to grow its user. I guess I don't undestand what you mean by cannibalizing? If I own a candy store and give candy away to get folks to my store door... Am I cannibalizing my existing revenue stream?

[redwein]

Re: New feature request / Wishlist

The question is not by how much... but if it does or does not. Vudu already offers free content, do you think they added it because they wanted to reduce the number of rentals?. Analysis is required when there are many unknowns... investment in futures requires analysis... Sales of goods on the web can be tied to number of users that visit your site. The more user that visit... even if they're buying or "not"... the greater the potential for sales... Nothing to analyze... just find a way to get more hits on your site. Analysis done... more hits more sales. What other analysis do you need?

It isn't a yes or know question. How much the sales are increased is directly relevant. Analysis is clearly required when you start giving something away for free that is similar to what you derive your main source of income from. That can cut into your profits and you need to know by how much. I honestly can't understand why you think that no thought is required here.

As for the free content that Vudu makes available now, it doesn't compete with the movies that they sell. That is a huge difference. Again, I'm surprised you can't see that. Anyway, neither you nor I run the company so we will just have to agree to disagree.

[inconspicuous]

Re: New feature request / Wishlist

I agree, I'm more than happy to pay for TV Shows, and support VUDU, although I'd like to see the price drop to .99 a show vs the 1.99 they are charging now, and I'd definately like to see ALOT more selections.

For "hour-long" [40-45 minutes] shows, I don't have an issue with the 1.99, but it is a bit much to pay $2 for 20 minutes of content when you could rent a 2-hour movie in the same quality for $1-$4. What I'd like to see is 'half-hour' shows at $.99, hour-long ones at $1.99, and a 'season pass' type of option for a discount on an entire season. The $.99 option is probably unrealistic, but they could at least come down to $1.49--just something that reflects the difference in value.

[tamanaco]

Re: New feature request / Wishlist

This is exactly what requires analysis. It is possible that adding the channel does increase the sales but you don't know how much. It is then possible that the channel also reduces rentals in the installed base because they offer competing content for free. If you don't think that requires analysis, then I just don't know what to say. I will venture to guess that any change like this would be preceded by some cost/benefit analysis, as it should be. It shouldn't be based on one person's opinion that "chances are it will result in an increase to the bottom line". That isn't rocket science either.

The question is not by how much... but if it does or does not. Vudu already offers free content, do you think they added it because they wanted to reduce the number of rentals?. Analysis is required when there are many unknowns... investment in futures requires analysis... Sales of goods on the web can be tied to number of users that visit your site. The more user that visit... even if they're buying or "not"... the greater the potential for sales... Nothing to analyze... just find a way to get more hits on your site. Analysis done... more hits more sales. What other analysis do you need?

[redwein]

Re: New feature request / Wishlist

What is there "exactly" to analyze?... It is not what I think or what you think your priorities or mines... The question is... does adding a channel result in more sales of Vudu boxes and more video rentals/purchases. This is not rocket science. The chances are that if Vudu adds a feature or a channel to the box and more users come it would result in increase to the button line. If I understand you correctly... not adding Hulu would then add to the button line of Vudu... How is that possible? The larger the user base the more opportunity for sales.

This is exactly what requires analysis. It is possible that adding the channel does increase the sales but you don't know how much. It is then possible that the channel also reduces rentals in the installed base because they offer competing content for free. If you don't think that requires analysis, then I just don't know what to say. I will venture to guess that any change like this would be preceded by some cost/benefit analysis, as it should be. It shouldn't be based on one person's opinion that "chances are it will result in an increase to the bottom line". That isn't rocket science either.

It may turn out in the end that there are other features/channels that Vudu could add that would have a more positive impact on sales of boxes, rental opportunities, etc., where those features wouldn't have the same potential to cannibalize existing rental revenues. Being able to watch already owned content on your own network comes to mind. Analysis of what Vudu should do should factor those things as well.

[tamanaco]

Re: New feature request / Wishlist

It's as quantifiable as the loss of revenue from people watching free content instead of paying for it on Vudu. What is a "gut feeling" is how those things offset each other. You can't assume that the priority you put on things is the same for everyone. That requires more analysis than just you or I saying "I think this, therefore it is true.". If it's your money and your company you can make whatever bet you want. I would just hope that Vudu would put careful thought into it using all available data and analysis when making that decision.

What is there "exactly" to analyze?... It is not what I think or what you think your priorities or mines... The question is... does adding a channel result in more sales of Vudu boxes and more video rentals/purchases. This is not rocket science. The chances are that if Vudu adds a feature or a channel to the box and more users come it would result in increase to the button line. If I understand you correctly... not adding Hulu would then add to the button line of Vudu... How is that possible? The larger the user base the more opportunity for sales.

I understand that if you own a business there is a certain level or risk... but given the opportunity I would make an "educated" bet rather than just using my gut feeling. There precedence here... more user more sales. Look at facebook... What do you think is their claim to fame? Their wonderful interface or the number of users that visit their site?

[redwein]

Re: New feature request / Wishlist

The convenience factor of using just one box (hopefully the Vudu box) to access video content from different channels is quantifiable... "not a gut feeling".

It's as quantifiable as the loss of revenue from people watching free content instead of paying for it on Vudu. What is a "gut feeling" is how those things offset each other. You can't assume that the priority you put on things is the same for everyone. That requires more analysis than just you or I saying "I think this, therefore it is true.". If it's your money and your company you can make whatever bet you want. I would just hope that Vudu would put careful thought into it using all available data and analysis when making that decision.

[tamanaco]

Re: New feature request / Wishlist

I see the point your guys are making. Maybe you're right. Maybe you're not. I'd say it's probably more complex than just a couple of guys "reasoning" about whether ot not it would be a net plus or minus for Vudu. My gut tells me it would be a net minus and yours says its a plus. Whatever decision they make, I hope it just helps keep Vudu around as it has become as important to me already as Tivo, the microwave, ATMs, etc., even without Hulu.

I think all those of us who have bought Vudu boxes have a vested interest in the company surviving. The convenience factor of using just one box (hopefully the Vudu box) to access video content from different channels is quantifiable... "not a gut feeling". I've known about the Vudu box for quite some time, but I only bought one when I learned about Vudu Labs. With Vudu Labs they provided some additonal content channels (youtube, TV Ondemand... etc) and opened the gate to aggregate "other" content. Without these new addtional Vudu Labs channels and the potential to add new ones... they would not have gotten my money.

If you look back... forgetting about content is exactly how Tivo got in trouble. It was disinter mediated by the cable companies. If from the beginning Tivo had understood how essential the content that the cable companies controlled was to their business model... they would had sold a ton of Tivo boxes and made a bundle on licensing fees from Tivo software. Tivo is a hardware and software company.... Vudu on the other hand is a hardware company and a content aggregator. (To a lesser degree with Vudu labs they're also a software company) As it currently stands, the success of its business model will be based on its success as a "content aggregator"... (Video content available for rental and purchase regardless content source)... not as hardware company. In this VOD game content is king.

[redwein]

Re: New feature request / Wishlist

I also sympathize with what beejarah is saying. Having the Vudu box support Hulu can only be a good thing... "a bonus". Additional channels add choice. Having more choices is a good thing... even if at a lower picture quality. What should be important to Vudu is that its users don't wonder away from their box in order to get other video content from other boxes. (Roku, Xbox, Tivo... etc) Having Hulu fans joining the Vudu gang increases the user base for Vudu. This should result in additional revenue from the sale of Vudu's boxes and from the increased rental and puchases of Vudu's exclusive higher resolution content based on a larger user base. As we keep saying... the more... the merrier.

I see the point your guys are making. Maybe you're right. Maybe you're not. I'd say it's probably more complex than just a couple of guys "reasoning" about whether ot not it would be a net plus or minus for Vudu. My gut tells me it would be a net minus and yours says its a plus. Whatever decision they make, I hope it just helps keep Vudu around as it has become as important to me already as Tivo, the microwave, ATMs, etc., even without Hulu.

[saxon]

Re: New feature request / Wishlist

I'm a new user and so far I like VUDU pretty well. The only disappointment is that there are too many movies available for purchase but NOT for rental. I can understand why a studio might not want to make a movie available for purchase, but why wouldn't they want to make them ALL available for rental? After all, when you go to a theatre to see a movie, that is essentially a "rental".

So three items on my wish list:

1) Make ALL movies available for rental (at least in SD).

2) For purchased movies, allow a "burn once" to DVD option. You could even make it so that the copy residing on the VUDU player is automatically erased when it is burned to DVD, so there would be only one copy total in the user's possession.

3) I hope VUDU eventually considers offering an Unlimited option for a monthly subscription fee. I would gladly trade my cable movie channel package ($29.95/mo), for a VUDU subscription that would allow unlimited downloads...or even a generous maximum (say, 30 movies per month).

[tamanaco]

Re: New feature request / Wishlist

I also sympathize with what beejarah is saying. Having the Vudu box support Hulu can only be a good thing... "a bonus". Additional channels add choice. Having more choices is a good thing... even if at a lower picture quality. What should be important to Vudu is that its users don't wonder away from their box in order to get other video content from other boxes. (Roku, Xbox, Tivo... etc) Having Hulu fans joining the Vudu gang increases the user base for Vudu. This should result in additional revenue from the sale of Vudu's boxes and from the increased rental and puchases of Vudu's exclusive higher resolution content based on a larger user base. As we keep saying... the more... the merrier.