I contacted VUDU about the issue and this was their reply:
Hello,
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We are currently experiencing issues with the Lollipop software. It appears that the issue is affecting playback on all devices with this software, due to a clash between the software and our VUDU app. We are actively working on a release that will remedy this bug for our customers.
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I have done some playing around with the app and noticed that after a few tries, it will eventually work for me. I also noticed, when I un-installed and re-installed the app, I had success with playback the first few tries. Nonetheless, there is an issue with the app that we’re looking to resolve. Just wanted to supply a bit of feedback from my personal experience.
*Vudu support
So, it looks like there's a bug, they're aware of, and working on it. Until a fix is found, playback will be hit and miss.
Sent from my Sprint G4(LGLS991), Stock