Movie rental service, Vudu, has launched an aggressive new campaign to take on competition from the likes of Netflix and Apple in the movie rental space by dropping the price of movie rentals to a new low. Starting soon, Vudu customers will be able to rent 4000 popular movies at a price of $2 a movie. That is a pretty steep drop that competitors will find difficult to replicate. These rented movies can be watched over a 48 hour period right from the point of first playback. Vudu movies can either be watched over the Vudu Box or streamed online over televisions and Blu-Ray players with such a facility.
While this is impressive, I am skeptical about the service taking off. Firstly, Vudu has noted that this offer will only last till new year. Considering that a good number of Vudu users will prefer to take the Vudu Box route to watch movies, the investment on a box is high seeing the timeframe of the offer. Streaming movies should however see brisk sales and it will be interesting to see whether and how Apple and Netflix react.