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The price of a Vudu box, which lets you rent thousands of movies, instantly, from the comfort of your sofa, has plummeted from $399 to $295. Observers think the company cut the price to compete with a much improved Apple TV, which now costs as little as $229.

Once Apple pushes out the software improvements to the Apple TV, the two boxes will perform much the same functions, at much the same cost. Customers will be able to buy or rent digital copies of both movies and TV shows.

One difference that may matter to folks who wish to buy rather than renting: the Vudu, with 250 GB of memory, can store more than the cheaper Apple TV, which only has 40 GB, and even the $329 version, which has 160 GB.

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