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How are UV integrated streaming services like Vudu and Flixster making any money? - Page 2

post #31 of 32
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Originally Posted by rdross80 View Post

I currently have both Flixster and Vudu linked with my Ultraviolet account. This means any UV-related movie I purchase shows up in both of those services without any extra charge (whether it be a Bluray movie with an access code or if I decide to buy it directly from one of those streaming services). For instance, I just redeemed a free movie from Flixster and afterwards I checked my Vudu account, and sure enough that movie was there. I can now stream that movie as much as I want from Vudu, and they aren't making any money off of that movie from me. And vice versa for Flixster, as I went to Walmart and did a disc-to-digital copy of a few of my DVDs and now they show up in Flixster. I can't see how this could go on for too long as-is, because they would end up losing money on all this free streaming. Not to mention when I do actually buy a movie from them, I'm only paying once, but streaming many times, which I'm sure cost them in bandwidth. Are they making money in other ways that I'm not seeing?

They are also making money on rentals. I've rented quite a few movies from them. Their HDX is the best quality streaming I can receive on my Sony BD player (it doesn't support Netflix 1080P). Plus they sell UV titles themselves as well, so probably make some money per each sale.

However, after their location was physically compromised and hard drives with customer data were stolen I decided not to use them anymore - I had virtual credit card number on file with them, canceled it and didn't put a new one in. I just use Amazon for everything now.
post #32 of 32
Quote:
Originally Posted by JoeSchmoe007 View Post

They are also making money on rentals. I've rented quite a few movies from them. Their HDX is the best quality streaming I can receive on my Sony BD player (it doesn't support Netflix 1080P). Plus they sell UV titles themselves as well, so probably make some money per each sale.



This is what I believe is the cornerstone of UV streamers. By letting consumers create video libraries, we will eventually buy/rent more and more titles directly from them (at huge profits) for the convenience. Not surprisingly, many titles unavailable to D2D are available for direct purchase.

Vudu, Flixster et all, are looking to become huge sellers of Digital Movies in the 2 or 3 year time period. By offering an apparent cheap and convenient "Video Vault" service, they are building up a targeted customer base. Google, Itunes and Amazon are not doing this. Consumers who have a large, legal collection of titles (and are consequently big buyers of video) may be attracted to the "Video Vault" offering.

I see the UV codes provided as paper inserts as a big mistake. Someone decided on the cheapest way to implement UV and its costing them tons of profit.

All of this is just my opinion. I just turned "Pro UV" within the last week after poo-pooing it since it was announced. The Vudu promo for "VuduToGo D2D" (that runs until Aug 31st) just made me take a closer look at it.
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