At $7 for a rental, I can't see this flying. I thought the hardware prices seemed reasonable, for a start up. I can kind of see the $10 monthly fee. But you can rent a BD for about $2 through Netflix or Blockbuster Online. It's really hard to justify a $5 premium, in addition to the monthly fee. Heck, just the monthly fee would get you about four Netflix BD rentals.
I can't see enough people signing up for this to sustain the model. Vudu is struggling, with similar pricing. While XStreamHD will likely offer higher quality, a chunk of the market won't want to deal with the dish, and the hardware is more expensive. The networking feature is another nice benefit, but there are other solutions (cheaper) to store OTA content, and most rental viewings would probably be done through the primary viewing area anyway.
I had high hopes for this, but media pricing will likely make it fail.
Scott
+1 Why would I want to pay $500 for the server and pro receiver, then pay $7 per movie? That's insane! You can get a ps3 as your blu-ray player for $300, then have $200 left over for your netflix, Blockbuster unlimited rental, etc. subscriptions. My Blockbuster costs me $23 a month and I can rent as many blu-rays, dvds, or games as I want. Netflix is about the same too IIRC. So I can get a PS3, plus 9 or so months of UNLIMITED rentals, just for the initial price to get started on this system.
Then take into account that devices like this have in the past, suffered from not getting movies ready for download on their release date.
Finally, let me add this up:
500 (startup) + 120 ($10 a month for the service if I understand correctly) + $105 a month for 15 movies a month (which is what I personally rent.) Now for a year of movies on this thing, you are looking at $1,880?!?!? Come on now, are people really looking at this thing to seriously put a dent in ANY other company's bottom line? Who is willing to pay $2000 a year for the convenience of not walking to their mailbox?
Yeah, it's an awesome proof of concept, and yes, it seems to have some big technology backing it up. But so did devices like the Philips CD-I, betamax, Atari Jaguar, etc. and we all see how for that got them....