If they weren’t upgrading the service to include HD movies, I’d say they’re doomed to fail with this pricing model. By offering HD, they may have a chance… though I wouldn’t bet on it. I believe most people will still prefer Netflix’s understandable low-tech methods and reasonable rates. Not to mention, anyone with a cable or satellite box has access to some sort of PPV or VOD without MovieBeam’s upfront hardware fee. Things could get interesting since Disney, the originator and a major investor, is leveraging their movie library by making flicks available to MovieBeam 30 days prior to when cable providers can offer them via VOD.
LA Times says: The service allows customers to rent movies from a library of 100 titles stored in a set-top box. As many as 10 new films, including some in high definition, are automatically delivered to the device each week via television airwaves. The MovieBeam box costs $199.99 after a $50 rebate and requires a one-time service activation fee of $30. Movie rental fees are $3.99 for new releases $4.99 for films in high definition and $1.99 for older titles.