The cost of VUDU’s basic 250GB VUDU HD player has been halved to USD $150.
According to the on-demand internet provider the move is not a sign of looming financial problems.
It stresses that the dramatic price cut is due to positive factors.
These are cited as a combination of lower component prices, higher movie revenues and increased content demand following strong holiday sales.
In October, VUDU launched a new video format to rival Blu-ray called HDX.
It delivers full 1080p at 24 fps to screens 40 inches and up via web distribution using VUDU’s TruFilm compression technology.
As well as the VUDU HD, the company is reducing the price of its home theater, VUDU XL, to USD $499 and adding in a connectivity pack that previously cost more than $100.
VUDU’s content library now runs to more than 13,000 movies and TV shows – including what it claims is the world’s largest HD library of more than 1,300 titles.