After almost a month with Vongo, Starz' new online movie service, I'm canceling it rather than extend the subscription. The strengths and weaknesses I detailed 3 weeks ago are still there after a lot of use, but what really stands out is a surprising lack of quality in the video delivery. The graininess is most evident when output to a TV, but even on my laptop, the quality is noticeably weak, probably close to a VHS or worse. It's not a deal killer by itself, but I now notice it every time I use the product. It doesn't heve to be HD quality, but I'm not sure that this level is sufficient by today's standards, even it accelerates the download process a bit and takes up less room on the hard drive.
The second issue continues to be breadth and quality of content - having had 3 weeks of new product releases now, it's clear that even with 500+ movies, media junkies like me will have trouble finding more than a few movies a month worth watching, at least after one has plowed through the backlog of movies you want to watch. There just isn't enough new product flow each month. This is not easily fixed, but if Starz could bring in additional library content such as tv shows, then it would probably change the value equation.
Finally, the editorial approach is certainly better than on the Real Movie service, but is still pretty lackluster. It doesn't surface the breadth of content actually in the system, forcing users to laboriously search for content, and the front door isn't alive enough to direct users in any direction. This should be easily fixable at relatively low cost, but there hasn't been any progress there.
Verdict - not worth $10 a month in current form, but still a step forward vs previous subscription alternatives.