One of my pet peeves is their handling of Over-The-Top (OTT) content aka streaming and downloadable video from the likes of Netflix, Amazon, Hulu, etc.

Let’s start with TiVo’s Netflix support. When it launched, back in December 2008, TiVo’s Netflix implementation was basically as functional as its contemporaries. There were some serious limitations – not being able to add titles to your queue, limited searching, etc. But those were limitations shared by all Netflix streaming implementations. Fast-forward two and a half years and TiVo’s implementation – is still pretty much the same as it was at launch. Meanwhile other implementations – on Blu-ray players, gaming consoles, streaming boxes, etc., have made great leaps forward. Roku’s new player on the Roku 2 line supports 1080p video, 5.1 surround sound, and subtitles – none of which TiVo supports. Not to mention features that have been in there previously such as searching the available titles and adding titles to your queue.

When the TiVo Premiere launched over a year ago, in March 2010, it was called “the One Box to Rule Them All”. Even then I felt that was undeserved hyperbole, and I feel that even moreso today. It was touted as being your one-stop-shop for content:

It’s the One Box: TiVo Premiere is your new cable box, movie box, web box, and music box; it’s the one box that gives you access to everything you want to get on your television and all with one remote. It’s a true one stop shop for entertainment.

Yes, the selection of content is respectable enough – Netflix (despite the horrendously out-dated player), Amazon Instant Video (despite still lacking streaming support), Blockbuster, Hulu (on the Premiere only, natch), YouTube, Music Choice, and web videos. But it is far from market leading. Most decent Blu-ray players and game consoles include a similar lineup these days, and often more. But this is hardly a market leading lineup. Let’s even include TiVo’s list of web videos. It still doesn’t measure up to, say, Roku’s content options. TiVo, while you’re updating the geriatric Netflix client, and implementing streaming for Amazon Instant Video so TiVo users can join every other platform with free videos for Prime members, how about MLB.com? Crunchyroll? Flixster? Movie Vault? NASA TV? You get the point. Oh, and fix the damn YouTube client too, some of the functions in there have been broken for what seems like forever.

To put it simply, if someone is looking for a DVR which also provides some OTT content, I’d recommend TiVo. But for anyone who is mainly interested in OTT content, I would never recommend TiVo. I’d probably recommend a Roku as their best option. TiVo isn’t even in the top five. I’d put connected TVs, gaming consoles, Blu-ray players, and other STBs like Boxee before I’d recommend TiVo to someone seriously interested in OTT content. Again, if they really want a DVR and would like the ability to access some OTT content, sure, TiVo is my first recommendation. But I could not in good conscience recommend TiVo to someone who had a serious interest in OTT.

I gave my now fiancee a Roku HD-XR, the high-end box from their second generation (the Roku 2 is actually the fourth generation), for Xmas 2009, shortly after we started dating. She watched Netflix streaming a lot at the time, but was doing it all on her 15″ laptop while she had an HDTV across the room. So I gave her the Roku to use instead. Since she moved in with me last fall I’ve set up the Roku in the bedroom, but it doesn’t get much use. We use the TiVo for most OTT content, with the PS3 as secondary, as they’re both on the main TV in the living room.

But I have played with the Roku just to experience it, and I think their ’tile’ interface is far superior to TiVo’s. And their content selection simply puts TiVo to shame. If TiVo is serious about playing in the OTT market, they really need to get more content, especially real-time content, on board. I’m increasingly tempted to move the Roku, or get a second one, to be able to access content like NASA TV, Crunchyroll, and other content on our main set – instead of using the TiVo. Or Amazon Instant Video’s free streaming for Amazon Prime users, which TiVo has promised but not yet delivered.

Any content TiVo offers I believe is also on Roku – and often in a superior format. TiVo’s list of officially sanctioned web videos is littered with cruft – stale podcasts that are long since defunct. Some of the podcasts they list are SD versions when there are HD versions available. They’re simply lacking real-time streaming content outside of the ‘big boys’ Netflix, Hulu Plus, and YouTube. NASA TV would be a great addition. You can download the SpaceVidCast podcasts on TiVo – but on Roku you can watch the streaming live shows and access their premium content.

TiVo’s interface to select web video content has not aged well. The content is grouped in ways that often don’t make sense to me. I’ve grown increasingly frustrated with it over the years, as things that used to be ‘quirks’ have aged into ‘major annoyances’. For example, if you browse by ‘all’ why are some shows grouped – like NY Times content – but also listed individually? And why aren’t other logical groups also there? Why isn’t there a group for all CNET shows? (I don’t mean the one item where you can subscribe to them all, I mean a folder like the NY Times has.) Or Revision3 shows? It would be better for users and the content providers if it were easier to find all of their shows in one folder.

Why are there so many defunct podcasts still listed, cluttering the list. especially in the bunch at the end that require TiVo desktop to transcode? Some of them have been dead for a year or two now. Why are some podcasts listed only in HD versions, some in both HD & SD, and others only in SD? And I don’t mean those that are only available in one or the other, but those that have HD & SD options. Even among the HD podcasts from the same provider it seems sometimes different HD variants may be used.

It is a frustrating mess. Worse, it is a buggy, frustrating mess. If I scroll up and down too much, especially in long lists of podcasts, it will inevitably crash and kick me out to TiVo Central. Sometimes I’ve discovered ‘poison listings’ where if my cursor so much as highlights that title it will crash out to TiVo Central. And I can reproduce it every time I highlight that title. These issues come and go, it is a little bit of random fun – will it crash on me this time? Let’s find out!

And how about the pitiful RSS support? You can enter an RSS feed for a podcast that isn’t listed – but all that does is store the feed for you and you have to remember to manually check it to see if there is a new episode up. How is that at all TiVo-like? It is pretty much anti-TiVo. Why can’t it work like the ‘blessed’ podcasts and periodically check for new episodes and download them? That’s kind of what RSS is for. So you don’t have to manually check for new content on each site.

If TiVo is serious about being ‘the one box’ and remaining competitive with the explosion of connected TVs, Blu-ray players, gaming consoles, and cheap media boxes like Roku, they need to seriously re-evaluate their approach to OTT content, IMHO. Personally I’d love to see them license Roku’s platform. The UI would need some massaging to blend in better with TiVo’s HDUI, but it’d be a vast improvement – as would the explosion in content offerings. And TiVo would be in a unique position to integrate all of that content into their search platform. That would be truly powerful. (Or maybe TiVo can use some of their new windfall cash reserves to acquire Roku outright.) Beefing up their OTT offerings should make them an even more attractive partner for MVPDs who are facing cord cutters and those simply cutting back on their package levels, using OTT to fill in the gaps.

Offer content creators an API to publish their content on TiVo, without jumping through too many hoops or getting blessed. Create a system to sell premium content, subscriptions, etc, to the user – and TiVo can take a cut. Like Amazon and the Kindle – anyone can self-publish their book, blog, or the like to the Kindle. Amazon collects the fees and takes their cut, passing the rest on the the creator. TiVo should be able to do the same, with or without Roku. TiVo seems to be more and more Apple-like, acting like a walled garden and not the platform to end all platforms they claim to be.

You may have read about the Virgin Media TiVo in the UK and the way it integrates OTT content like BBC iPlayer and ‘catch up’ features into search and the guide. TiVo in the US could do much the same using OTT content – missed a show? Scroll back in the guide and it links to Netflix, Hulu, the network site, wherever that episode is available. Watching game you recorded? TiVo could pop up links to related content on MLB.com. Watching anime you recorded off Adult Swim? Maybe it suggests a related show from Crunchyroll.com.

Now that would be one box to rule them all – and not a pretender making unsupportable claims on the throne.

But that’s just my two cents. You may not agree.

So it is nice to see VUDU giving users the option to wait a little longer and get higher quality content instead of being limited to fast but comparatively poor quality playback. However, they don’t say just what the quality level is. They talk resolution, but, as I’ve said, resolution is just part of the puzzle. All 1080p24 content is, by definition, the same resolution. But if one is 40Mbps and the other is 4Mbps, all else being equal (same codec, etc), one is going to be much higher in quality. I really would like to know what the HDX bitrate is. Conventional non-HDX HD content from VUDU requires 4Mbps, I’m presuming HDX is higher, but how much?

Some press is calling it Blu-ray quality, but that’s bunk. Even without knowing the bitrate being used I’m positive it doesn’t match Blu-ray, and I’m just as positive it doesn’t use lossless audio like Dolby TrueHD or DTS HD-MA. The website says:

HDX technology delivers the best available surround sound quality for Internet delivered movies with immersive, high resolution sound at a 40% higher bit-rate than standard surround sound DVD’s.

‘Standard surround sound DVDs’ use Dolbly Digital at 448Kbps, sounds like they’re using Dolby Digital at 640Kbps.

HDX is definitely a step in the right directly, IMHO, but don’t believe it is Blu-ray quality.

EDIT: Found this from David Pogue at The New York Times:

To see why HDX looks so good — especially on big screens — check its data rate, a measure of how much information is used to describe each frame of the video. It averages around 9 megabits a second, but spikes to 20 during action scenes. Compare that with Vudu standard definition: (2.2 megabits a second), Vudu and Apple TV high definition (4), regular DVD (8) or Blu-ray DVD (40). In other words, HDX quality is somewhere between DVD and Blu-ray. The audio offers a 40 percent improvement, too.

That is a marked improvement over their normal HD streams, but yes, still not Blu-ray quality. It does make the product more appealing in my eyes though, and certainly puts VUDU in the lead as far as HD download services go. I’m not sure if he’s comparing just video bit rates or what – DVD’s full video rate is ~10Mbps, but that’s MPEG-2 so apples and oranges to the others which are H.264. Blu-ray is 40Mbps max for video (not that it is all used normally), 54Mbps total bit rate.

HDX raises my personal interest in VUDU, though with a TiVo Series3, PlayStation3, and SlingCatcher already it isn’t high enough yet to get me to put another box under my TV.

Now they’re following up on that with a deal they’re calling ’99 for 99′. A rotating selection of 99 titles available to rent for just $.99 each. That blows away Amazon’s weekend sales, which generally only have an handful of titles for $.99, when they have any for that little. EngadgetHD has VUDU’s press release.

With video downloads it is always a compromise between speed and quality. For instant gratification you have streaming video, but that’s the lowest quality. Broadband speed limitations restrict the maximum possible streaming bitrates. Downloads can offer higher bitrates, but still require fat pipes to be feasible, and, of course, storage. But even the best download services don’t come close to matching the picture quality of Blu-ray, because they can’t match the bitrates. And don’t even get into bonus features, lossless audio (Dolby TrueHD or DTS HD-MA), multiple audio and subtitle tracks, etc. With most commercial Blu-ray titles using between 30GB or more of disc capacity, we’re not going to be downloading content at that quality in the near future.

So I was a little gratified to see this article in CE Pro, entitled Blu-ray and Downloads: Why Both Are Worth Offering. CE Pro is an industry magazine with a primary audience of consumer electronics professionals, the kind of folks who install custom systems in high end homes. The article focuses on Blu-ray for physical media and VUDU for downloads, but Amazon Unbox on TiVo, iTunes on Apple TV, Xbox 360, PlayStation3, NetFlix, etc, are all possible broadband video options for the consumer. Downloads aren’t about to replace discs for those who prefer a quality viewing experience, but downloads offer the kind of instant gratification that discs can’t match. I think having both available is the best approach, the best of both worlds.

“Not a consumer interviewed wants to buy another set-top box,” said Richard Doherty, research director for research firm The Envisioneering Group.

I certainly can’t argue with that, I’m loathe to add another STB to my stack. And I’ve said so repeatedly. I think that gives TiVo and the Xbox 360 an edge – people buy them for other functions (DVR & gaming, respectively), and the downloads are kind of a bonus. And when it comes to HD, I have to agree with this as well:

Richard Bullwinkle, chief evangelist for Macrovision, predicts a layering effect. Macrovision has looked at TiVo, Xbox 360, Vudu and Apple TV.

“The best experience on a large TV is Blu-ray,” he said. “None of the download boxes gives you the same experience.”

But I thought what they said about TiVo in particular was unfair.

But download times are long, nothing is available in high-def, and the 24-hour rental period once the movie has started can be problematic.

The download times are roughly comparable to other services – but it, of course, will vary a lot. The TiVo Series3 and TiVo HD have had progressive download since 9.2 – which means they can start playback once enough of a buffer has built up, with no need to wait until it is all downloaded. I’d expect the Series2 to get the same in the next update. (They’re still on 9.1.) And the article makes the 24-hour window sound like a problem unique to TiVo when it is common to all of the download rental services. They don’t mention it when talking about the three other products, so readers who don’t know what will think this is a TiVo limitation. But there is more:

However, Bullwinkle said, TiVo offers the worst quality of any of the movie downloading options he’s tried, and the number of TiVo owners who download movies is small.

Ouch. That especially stings given who it is coming from. Why? For those who don’t know, once upon a time Richard Bullwinkle was known online as TiVolutionary. He was one of the early TiVo employees and their primary online evangelist on forums like TiVoCommunity.com. Back in May of 2002 he left TiVo and went to work for ReplayTV. And now he’s with Macrovision.

The quality issue is largely subjective, so I’ll leave that as may be, but how does he know how many users download movies? I don’t believe TiVo or Amazon release those numbers. Did they do an independent survey of TiVo owners? Where is the data to back up the claim?

But TiVo isn’t the only one to get a little heat in the article. All four products get what I consider to be fairly poor reviews, highlighting their shortcomings. But read the article for yourself.

TiVo also got another mention in this issue, with a small article on the roll-out of TiVo Desktop 2.6. (And I apologize for not having my review of said up yet, the behind-the-scenes work on the renaming took a lot more time than I expected.)

We wanted the VUDU to deliver in such a way that HD freaks could really grab hold if those excruciatingly long wait times encountered with Netflix / Blockbuster were pushing them to find an alternative. Unfortunately, we still can’t wholeheartedly recommend the VUDU to those who appreciate high-definition. To be honest, the device still seems grossly overpriced when you consider that the aforementioned rental-by-mail options can be turned on and off on a whim, provide flicks that don’t vanish 24 hours after you hit play for the first time, and have HD libraries that far exceed that found on the VUDU. The primary selling point of this device is its ability to provide absolute instant gratification, but with HD VOD quickly expanding into more markets across the nation — not to mention the smattering of local B&M video stores surrounding most everyone — we’re still left scratching our heads trying to uncover exactly what niche this thing is aiming for.

At the end of the day, our time with the VUDU could be described as generally enjoyable. We were pleased with the interface, thrilled with the ease of use and particularly wowed by the audio quality. Still, those flashes of greatness can’t overcome the subpar HD video quality, high initial cost of ownership and unfortunate rental restrictions. Is the VUDU a unique and nifty gizmo for acquiring HD movies? Unquestionably so. Is it something that’s ready to replace your satisfactory relationship with HD VOD, Netflix / Blockbuster or HD DVD / Blu-ray? Not just yet.

VUDU is expensive for a single-purpose device, especially when video downloads are appearing as features on other devices – Amazon Unbox on TiVo, downloads on Xbox, AppleTV, etc. Sony is talking about adding downloads to the PS3. Netflix is talking about bringing streaming to more platforms, including the 360 and PS3.

And the system they use, caching a small amount of video for instant starts and relying on downloads for the rest, limits their quality. VUDU claims they can support HD downloads with a minimum of 4Mbps. But there is no way they can even come close to Blu-ray (or HD DVD) with bitrates that low. VUDU claims they’re ‘broadcast quality’, but even matching broadcast with bitrates that low would be tough. (Even given their codec advantage – broadcast is MPEG-2, VUDU is MPEG-4/H.264.) And EngadgetHD’s review reflects this.

In what I think it is nice gesture, VUDU will offer a $100 movie credit to anyone who has purchased a VUDU box in the last 30 days, provided they can supply proof of purchase. Shades of the iPhone price drop, though this credit should certainly be more useful to VUDU owners than Apple’s credit was to iPhone owners. They also restate that the VUDU XL, announced at CES, will ship by the end of February.

The press release:

VUDU CUTS ENTRY PRICE $100 TO $295

Breakthrough Instant-Access Video Entertainment Experience Drops To Mainstream Price Level

Santa Clara, CA – January 24, 2008 — VUDU Inc., the company that brings instant access to video-entertainment to the living room, today announced that it has lowered the price of the basic VUDU box to $295, a decrease of more than $100. The new price takes effect Jan. 24, 2008.

Since its launch last year, VUDU has quickly achieved critical mass among home video fans by offering instant gratification, always-on accessibility, a vast selection of current and classic video content and weekly delivery of new titles as they come to market.

“We’ve been thrilled by the enthusiastic response we’ve received from our early customers, which tells us we’re giving video fans the experience they’ve been waiting for,” said Patrick Cosson, VUDU’s VP of Marketing. “With its large catalog of Standard Definition and High Definition movies and TV shows and now a new lower price, VUDU is the perfect upgrade for any movie lover who wants great video quality plus the convenience that only digital delivery can offer.”

VUDU enables consumers to have instant access to video entertainment directly from their TV. By crafting relationships with every major Hollywood movie studio and more than 22 independent studios and distributors, VUDU offers the largest catalog of any online movie distributor and new movies and TV shows are added weekly.

Anyone who purchased a VUDU box in the last 30 days can receive a $100 movie credit with proof of purchase whether they purchased the product from VUDU.com or from any other retailer by contacting VUDU Customer Care (888-554-VUDU).

At the recent Consumer Electronic Show in Las Vegas, VUDU announced the addition of 70 HD movies from top studios and unveiled the VUDU XL, a brand new high-end version of the already successful VUDU box. The new product, designed for integration into high-end home theaters, will ship by the end of the February.

About VUDU

VUDU is dedicated to bringing instant access to video entertainment including thousands of mainstream movies, HD films and TV shows to every living room. Through relationships with every major US movie studio and more than 22 independent studios and international distributors, VUDU offers the optimal home entertainment experience for consumers. VUDU gives movie and TV fans the ultimate in flexibility and choice. Consumers can finally watch what they want, when they want-no planning needed, no computer necessary, no software downloads, and no cable TV service or satellite subscription required.

I still say download services like this should be incorporated into other devices – as Unbox is on TiVo and Netflix is doing with LG – or, failing that, the hardware needs to be dirt cheap. How about a $99 VUDU box with minimal internal storage and the ability to delete and re-download purchases, and support for external drives to allow people to bring their own storage. $99 would get the box into more homes, and those who really use it will add-on storage.

On the up-side, VUDU is also adding 70 more HD films in January. Instant HD playback requires a broadband connection of 4Mbps or greater. That would make me nervous – 4Mbps is extremely low for HD streams, even using 720p and H.264 or VC-1. You really have to over-compress HD content to squeeze it into 4Mbps.

Via EngadgetHD.

They dropped a press release about the promotion:

Dec 19, 2007 08:00 ET

VUDU Offers Free Boxes to Customers Who Purchase Select AQUOS 1080p High Definition LCD TVs Through Vudu.com

Access the World’s Biggest Assortment of High Quality Digital Content on Select Sharp AQUOS LCD TVs During Limited Holiday Promotion

SANTA CLARA, Calif., Dec. 19 /PRNewswire/ — VUDU Inc., the company that brings instant access to video entertainment to the living room, announced today that they will offer a free VUDU box to customers who purchase select models of the AQUOS high definition televisions through Vudu.com over the holidays.

The free VUDU box will be offered through January 5, 2008 on purchases of Sharp AQUOS televisions with 42″ or larger screens. (visit http://www.vudu.com/sharp.html for details)

“This holiday offer guarantees that new owners of the finest high definition product in the world will have direct access to lots of great content with superior picture quality,” said Bob Scaglione, senior vice president and group manager, Product and Marketing Group, Sharp Electronics Corporation. “Through this offer, new AQUOS owners will be able to instantly enjoy thousands of movie titles, television content and more on a pay as you go basis.”

Just last week, VUDU became the first service to offer an HD movie for digital purchase on the same day and date as the title was released on both Blu-ray and HD DVD high definition formats at retail stores.

“We’re adding loads of HD quality content to the VUDU service so AQUOS owners will have thousands of new and classic movies, TV shows and more from which to choose. HD movies will be lighting up high definition screens everywhere across America this holiday season,” said Tony Miranz, VUDU’s Co-founder and EVP of Sales and Business Development.

The company is also currently offering a limited number of television programs that are available on demand at a per-episode price. VUDU plans to expand its offering of television content in 2008 as well.

For VUDU titles that are not natively in HD format, VUDU up-scales content to a quality comparable to 1080i/1080p24 for a picture quality that is superior to an over-the-air broadcast and better than most DVDs. Because the box is always connected to the Internet, VUDU can continually update the quantity and quality of the content available to customers. Each week, new content is added to the VUDU service giving consumers instant access to the new content they most want to watch.

About VUDU

VUDU is dedicated to bringing instant access to the best in video entertainment to every living room, including both television and theatrical releases. Through relationships with TV networks, every major US movie studio, and more than 22 independent studios and distributors, VUDU offers the optimal home entertainment experience for consumers. The company was founded in 2004 and is headquartered in Silicon Valley. http://www.vudu.com/

Source: VUDU Inc.

CONTACT: Tara Wagner of SutherlandGold Group, Tara@sutherlandgold.com,
+1-917-509-5399, for VUDU Inc.

Web site: http://www.vudu.com/

An article in PC Magazine sheds a little more light. XStremeHD will have a ‘server’ in the home, which receives the content from the satellite. There will be three models of server, with capacities ranging from 500GB to 2TB, with the low end storing 30 to 70 titles, and the high end up to 280. (I’m guessing the third, unmentioned size is 1TB.) The server can distribute content to media receivers around the home.

XStremeHD will used leased transponder capacity to delivery content to a small dish at the home. Which satellites will be used is unknown, but it is known that they will not be using DirecTV or DISH Network birds. Users will be able to self-install the dish, or they can utilize an installer to set everything up. Content will be distributed in MPEG-2 or MPEG-4 formats in full 1080p, with audio up to 7.1 channels. That compares favorably with Blu-ray or HD DVD for movies.

What isn’t clear is the way the content will be distributed. Will be a pre-downloaded, as Moviebeam used to do, so that users can only watch the films already stored locally? Or will it use on-demand streaming to provide a wider assortment of content, like VUDU does? Or some combination, say where the first X minutes of a number of programs are stored locally and the rest is pulled down dynamically, to allow immediate viewing while giving the system time to download more? The article doesn’t really clarify that at all. It opens with this:

A new service that will fill a set-top box with high-definition, pre-downloaded movies will launch early next year…

But it later states:

The technology will apparently use streaming; Gonzalez claimed that consumers will be able to watch movies within five minutes.

So which is it? I guess we’ll find out at CES.

The same article has some info on VUDU. While the MSRP is $399, it seems VUDU also sells the boxes for just $99 to “evangelists”. It sounds like they’re seeding boxes with users willing to talk them up online:

However, Cosson also confirmed a report by blogger and former Wall Street analyst Henry Blodget that VUDU offers discounts to “evangelists”. Although the VUDU boxes are normally $399, VUDU offers evangelists the option of buying the box for $99, together with an additional $99 worth of movie credits.

“There is no quid pro quo,” Cosson said. “We are just giving them suggestions to what they should do as an evangelist.”

According to an e-mail Blodget said he received, VUDU suggested that evangelists “educate others about the benefits of getting movies delivered over the Internet and directly to the TV,” “respond to third-party blog postings,” “participate in online surveys and help us shape the product’s evolution,” “present the product to friends and acquaintances by hosting movie parties,” and “be [VUDU's] eyes and ears in the marketplace.”

Heck, for $200 (box and movie credits), I’d probably check it out too. While I don’t like the idea of Yet Another STB in my entertainment center, it would be easier to swallow if the costs weren’t so high. $400 buys a TiVo HD and a decent service period, and then you can use Amazon Unbox for movies. While Unbox is still SD only, it is expected that TiVo will be adding HD downloads (maybe we’ll hear something at CES). And right now VUDU is still really SD, the handful of HD content is more a demo/trial at this point. If VUDU could find a way to drop the acquisition costs and make their money on the content, I think they could shift some more boxes.

Via Gizmodo.