VUDU is upgrading its set-top boxes to add support for free streaming content from YouTube and 120 channels of on-demand content. The VUDU platform is primarily a movie-rental service, where you can choose titles through the box's interface and immediately stream them to your TV in up to 1080p resolution. Unlike streaming Netflix boxes, VUDU charges per-movie, with rental prices generally between one and four dollars.

The new television content is available in a mix of both standard and high definition formats, with the programs categorized by genre. Some of the providers of content for the service include NBC, CNN, MTV, PBS, and National Geographic. In addition to user-generated programming accessible through YouTube, VUDU is also enabling its players to search for and display images from Flickr and Picasa. These moves are behind the company's goal of establishing a new standard for "Rich Internet Applications", set-top box software for navigating and streaming this type of content.

While it's an admirable goal to try and unify streaming providers and set-top box makers, VUDU has its work cut out for it, as it needs to attract a large customer base to gain that kind of clout with providers and manufacturers. For now, VUDU hardware is very expensive, with the cheapest set-top box at $250, well over twice the cost of Roku's Netflix Player, and the rental prices don't improve over those of brick-and-mortar stores or pay-per-view. That's not a combination that looks likely to pull a lot of users away from cheaper solutions.

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