VUDU Debuts its $399 Movie On-Demand Box

VUDU, a start-up based in Santa Clara, California, began selling its movie-on-demand set-top box. VUDU initially features more than 5,000 movie titles from every major U.S. film studio and more than 20 independent and international film distributors. The VUDU STB, which retails for $399, pre-caches content on its 250 GB internal HDD and then uses a broadband connection to download files using its peer-to-peer application.

Consumers pay for each movie on an as-you-go basis. There are no subscription or activation fees. Prices for one-time rentals range from $0.99 – $3.99, and prices for purchased movies range from $4.99 – $19.99, depending on the age of the movie.

http://www.vudu.com/

• VUDU is venture-backed by Greylock Partners’ David Sze and Roger Evans and Benchmark Capital’s Bill Gurley.