Dear VUDU, Prices

[LMGknight]

Hi there. First I want to say I've enjoyed signing up with Vudu and linking Disney and Ultraviolet accounts and getting some free movies in the process. I've even rented from the $.99 section. I also may purchase movies in the future. I really like the idea of getting the codes after buying movies at Wal Mart. Which brings me to the price issues.

VUDU could really compete with Redbox if one thing is changed. Prices. I live in a small town(20k) next to a really small town(4k). i;d say between these two towns there is roughly 10 Redboxes. DVD's and Blu Rays at $2 or less. Used movies to buy, Blu Ray or DVD, for $5!

It is too convenient and too cheap to rent from Redbox or even a local store at $1.50-$3(mind you I never rent from a video store for $3) to even consider spending $4-$5 to rent on VUDU. Here's my two cents take it or leave it.

First, everything on your site should be rent or buy. Separation just confuses the issue. Second and most importantly drop new release prices. Rent SD for $2 and HD for $3. Then I'm renting from you regularly.

Are these ideas crazy? I doubt it. You're owned by Wal Mart the biggest retailer in the world with more money than some countries so I know you can swing it. I think you'd make more in the end anyway. I mean look at how you're already giving away Sparks for FREE just to get people on board.

Anyway, again just my thoughts. I know a lot of people would join me with lower prices and more selection. Just something to chew on. Thanks for the service.

[Capt-Cupcake]

Re: Dear VUDU, Prices

First, everything on your site should be rent or buy. Separation just confuses the issue. .

I don't understand what this means.

Right now Vudu does offer rent or buy.

[jeffpn]

Re: Dear VUDU, Prices

He means every title should have a rent option and a buy option. I'm sure Vudu would love that, too. Those options are determined moreso by the studios than by Vudu. And his theory on pricing doesn't seem to jive, either. It's just like a fancy steakhouse versus a cheap steakhouse. Yes, you can get steak at either place. Of course the more expensive steak is going to more tender, flavorful, etc. Most if not all of Vudu's competition doesn't offer 1080P for example. You get what you pay for. If Vudu wasn't getting the sales they want at the prices they offer, they would lower their prices. A major component of setting prices is what customers are willing to pay. You may not want to pay those prices, but that doesn't mean no one is willing. Vudu is making money at those prices. I know, I know, they'd make more money if they lowered their prices because they'd get more sales, right? How much does Vudu have to pay for each title they offer? Us customers have no idea. How much more would they have to spend on infrastructure if they had all those customers? Us customers don't know that, either. Vudu has to ensure that they provide enough bandwidth to serve everybody. I highly doubt that Vudu is going to lower their prices because a customer (and you are far from the first to make the point) says they need to lower their prices. The best way to make that happen (and it's not a good or easy way) is to convince customers not to buy at those prices. It's the same reason the gift shop at your favorite NFL stadium charges $100 for a jersey - because they can.

[Popcorn]

Re: Dear VUDU, Prices

And his theory on pricing doesn't seem to jive, either.

Maybe not or maybe he does have some valid points. I agree with the OP that at his price points I would rent movies exclusively from VUDU. I do hesitate at times on movies I'm not sure if it's worth a rental on VUDU but I'll pay the $2 bucks for the blu at Redbox because the boxes are directly on my route home from work. Yeah I'm cheap that way but I also believe there are many folks like me and the OP.

P.S. Please don't take my response as a gripe. Actually loving my experience with VUDU so far.

[Squatting Hen]

Re: Dear VUDU, Prices

I consider myslelf "thrifty" opposed to "cheap" but of course everyone would love lower prices on things they buy. For me though, Redbox is a no go. Even if Redbox reduced blu's to $1 I would pass on them. With having a few kids, I can't tell you how many times we planned on watching a movie in the evening after bedtime only to have it not work out, or be too exhausted to stay up. Redbox would end up costing us more because odds are very high we wouldn't be able to watch it that night. With Vudu, we can rent it right there, when the time is right, and the stars all align. When the daily deal was for the $0.99 rentals, there were many times we would just purchase the rental that day, and have the ability to start it within 30 days, which worked out great for us.

I can see how Redbox can be great for some people, but for us, and I assume others with a busy household, it is not the best or most convienent retal option.

[Jeff*H]

Re: Dear VUDU, Prices

VUDU doesn't always have much, if any, wiggle room on pricing structures, as it's the studios who own the content and tell the providers how to price it, what their revenue splits will be (i.e. 50/50, 60/40, etc.), and tell the providers if they can offer up certain titles for sale. Also, some content has exclusivity windows with specific providers for a period of time, so others can't always offer those titles during that period. Finally, pricing models that the studios set for DVD/Blu-ray rental/purchase is not always consistent with pricing on the digital side--they are 2 different divisions of the home video business unit (digital vs. physical media) and often work independent of each other.

At least this was my experience working directly with studios on the pay TV/digital side of the business in the satellite TV realm.

[Popcorn]

Re: Dear VUDU, Prices

VUDU doesn't always have much, if any, wiggle room on pricing structures, as it's the studios who own the content and tell the providers how to price it, what their revenue splits will be (i.e. 50/50, 60/40, etc.), and tell the providers if they can offer up certain titles for sale. Also, some content has exclusivity windows with specific providers for a period of time, so others can't always offer those titles during that period. Finally, pricing models that the studios set for DVD/Blu-ray rental/purchase is not always consistent with pricing on the digital side--they are 2 different divisions of the home video business unit (digital vs. physical media) and often work independent of each other.

At least this was my experience working directly with studios on the pay TV/digital side of the business in the satellite TV realm.

Great explanation.... wish there was a simple thanks button here.

[jeffpn]

Re: Dear VUDU, Prices

Yeah I'm cheap that way but I also believe there are many folks like me and the OP.

P.S. Please don't take my response as a gripe. Actually loving my experience with VUDU so far.

There's not a consumer out there who wants to pay a higher price than necessary. But, it doesn't matter how many cheap/thrifty/frugal customers there are. Stores are going to decide for themselves what to charge. As long as people are paying the prices they ask, they'll keep the prices where they are. When sales fall, the company will then do what they need to do in order to get sales. Vudu, like any company, exists to make money. You got to believe they're making money at the prices they charge, even if you and others think they charge too much. If people weren't paying their prices, they would have to lower their prices, offer more, or they would cease to exist.

[Popcorn]

Re: Dear VUDU, Prices

When the daily deal was for the $0.99 rentals, there were many times we would just purchase the rental that day, and have the ability to start it within 30 days, which worked out great for us.

In full agreement even for folks (like myself) who are empty nesters now. The 99 cent rental was enough incentive for me to check the site almost everyday. The current month full of 99 cent deals doesn't do it for me. Sadly the majority seem to be older catalogue titles, movies are already own, or have seen too many times. Loved how once in a while VUDU would sneak in something that had only been out on disc for a month or so.

[Popcorn]

Re: Dear VUDU, Prices

There's not a consumer out there who wants to pay a higher price than necessary. But, it doesn't matter how many cheap/thrifty/frugal customers there are. Stores are going to decide for themselves what to charge. As long as people are paying the prices they ask, they'll keep the prices where they are. When sales fall, the company will then do what they need to do in order to get sales. Vudu, like any company, exists to make money. You got to believe they're making money at the prices they charge, even if you and others think they charge too much. If people weren't paying their prices, they would have to lower their prices, offer more, or they would cease to exist.

I believe eventually they will have to lower the prices. Walmart has always been about Joe 6 Pack and IMHO this is no different in that Joe (some of my DNA) will have to get on board for VUDU to really flourish. But then again if anyone can corner the market on something it's Wally. I know VUDU has been around a while and this may sound weird but I would consider you part of the early adopters. I have no clue if VUDU is making money at this point, but it sure seems they are pushing it to the average consumer in a full assault lately.

[jeffpn]

Re: Dear VUDU, Prices

Well, let's wait and see!

[Popcorn]

Re: Dear VUDU, Prices

Sorry, just one final thought. Probably Netflix is the biggest deterrent to VUDU. Cheap package for a good size movie inventory.

And you're right, we'll see. Streaming is the present, and future, even for an old guy like me.

[jeffpn]

Re: Dear VUDU, Prices

Netflix is huge, there's no doubt about that. But Vudu has something Netflix doesn't have. Vudu has newer titles, and higher quality. Only time will tell if there's enough VOD customers who appreciate that. Does Netflix allow movies to be downloaded to your device? I've never used Netflix, much to my daughter's dismay.

[Capt-Cupcake]

Re: Dear VUDU, Prices

For me though, Redbox is a no go. Even if Redbox reduced blu's to $1 I would pass on them. With having a few kids, I can't tell you how many times we planned on watching a movie in the evening after bedtime only to have it not work out, or be too exhausted to stay up. Redbox would end up costing us more because odds are very high we wouldn't be able to watch it that night..

I will NEVER use Redbox again. A few days before Christmas I looked in the 'for sale' menu of the Redbox to see what used Blu-Rays were available. I bought three to stick in my brother's christmas stocking for 5.00 a piece. Just today I got an e-mail from Redbox charging me 108.00 for the 'Rental - non return' of the three films. I spent 45 mins on the phone with Redbox customer service explaining that it was not a rental, I bought them in the 'for sale' sub menu. They fought me and fought me on it. I *FINALLY* got a supervisor on the line who agreed to refund $75.00 bringing the discs to 11.00 each. Still more than I intended to pay seeing as the kiosk listed them at 5.00 each. I'm done with them forever.

[Popcorn]

Re: Dear VUDU, Prices

Holy @#$% batman!!! Thanks for telling that story.