Set-top box maker Entone today inked a deal with online content provider Vudu to bring the company’s over-the-top (OTT) video library to its line of IPTV STBs. This is Vudu’s first partnership to embed its software into a device other than its own standalone box. The idea is that instead of cutting the video cord for an oftentimes cheaper OTT Internet video service, consumers will remain loyal to their service provider by accessing the best of both worlds.
Traditionally, most IPTV providers have viewed OTT providers as the competition – freeloaders on their network. While Vudu has expressed interest in pursuing partnerships with telcos providing IPTV, service providers – with the exception of Toledo Telephone – have remained hands off. Yet by embracing OTT rather than defending against it or paving the path alone, Entone is hoping to create a win-win scenario for the content providers, consumers and, especially, the operators at risk of losing their consumers to the Internet.
Vudu has not released its sales numbers, but the company has struggled in the past year as competition in the OTT STB space heated up and customer awareness remained low. The company faces competition from recently launched ZillionTV and Sezmi, which are both counting on ISP partnerships, as well as standalone boxes from Netflix, Blockbuster, Apple and many others. When it comes to partnerships though, IPTV STBs are just the beginning of what Vudu can and should embed its software in. Consumers have indicated they see more value out of box that performs multiple functions, so digital-video recorders, gaming consoles or even direct in the TV set are all emerging as viable options.
When the joint venture launches as a software upgrade at the end of June, Entone customers will get access to Vudu’s library of 14,000 movie and TV titles, including 1,500 HD films and Vudu’s rich Internet applications platform. Everything else outside of the box and the remote will remain the same, including the business model, user interface and software.
Entone currently works with 50 U.S. telcos serving 200,000 consumers. Many of its typically smaller, regional IPTV provider customers will use Vudu as their primary or only video on-demand offering.
