30. March 2011 10:06
We recently wrote an article about “Vudu”. Vudu.com is a website/application that allows people to buy and rent movies then watch them on their TV or computer.
This is different than NetFlix. NetFlix does “DVDs” and older movies online. They do this as a monthly subscription where Vudu only charges you for what you watch.
Rumor has it that NetFlix has been trying to figure out how to fold this into their business model. NetFlix has allegedly been taking their time because there is no competition.
However, Amazon recently just announced Music and more importantly MOVIES over the cloud. (article)
By the “Cloud” Amazon means that you can download the music and move any time that you want to. Previously with Amazon, you could only download the file once and then had to rebuy it if wanted to do so again. If your hard drive crashed without a backup you’d be out of luck and possibly out of hundreds or thousands of dollars of music, movies and tv shows. The Amazon Cloud fixes all of this.
“Amazon Cloud” is a lot like what Vudu is already doing when you buy a movie. “NetFlix” is very similar to what Vudu is doing when you rent a movie. If either were to buy Vudu, they would have intant leverage over the other.
While Amazon’s Cloud has to also compete with iTunes and Android’s future cloud store, only one thing is nearly certain. “BLOCKBUSTER CAN’T AFFORD TO COMPETE”
Furthermore with cable companies offering more and more “On Demand” content, Vudu is looking more and more desirable to the entire online TV market.