Streaming media provider Vudu has partnered with LG to include its software into upcoming LG high-definition TVs. The move will get rid of the intermediary set-top box and allows consumers to directly watch on-demand content from the internet on their TVs.

“Smart TV’s are part of an exciting new industry trend,” says Alain Rossmann, CEO of Vudu. “Vudu is partnering with leading consumer electronics vendors to embed the new Vudu service directly into the TV, eliminating the expense and hassle of purchasing, installing or connecting another device to the TV.”

The new Vudu service delivered through LG TVs allows consumers to discover and watch high definition movies on-demand. The service will be available on upcoming models of LG’s broadband TVs later this fall.

Licensing Vudu’s software to consumer electronics makers such as LG though is a strategy that allows Vudu to go out of the box and focus on delivering the service.  It’s a strategy similar to what GPS-navigation devices maker Dash had adopted. Dash started out by producing standalone GPS boxes with its software that offered services such as local search. But the company soon abandoned the hardware-based GPS systems and instead focused on licensing its applications and services to run on other products.  BlackBerry maker Research In Motion acquired Dash earlier this year.

In the last two years, streaming media boxes that bring online movies, TV shows and content to the TV have become popular with consumers, though they are still a small fraction of audience that rents movies. Apple launched its Apple TV in 2007.  Meanwhile, Roku, a company that started by offering $100 boxes in partnership with Netflix included access to content from Amazon.com earlier this year. Netflix rival BlockBuster also has a streaming video box available.

Vudu says its service differs from rivals in that it can offer movies in 1080p definition and high resolution Dolby Digital surround sound. Vudu also offers features such as instant fast forwards, rewind and instant start for all its movies. Customers can instantly buy or rent from the company’s library of movies with no monthly fees.

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