And these devices are actually very plausible now at this price range, putting out 1080p and trans-codes on it's own or consumes a DNLA source.
That is exactly why I purchased my Samsung Blueray player... It was around $100 and promised to play mkv files... however as I have warned... WiFi and codec reliability on these devices is spotty at best. DLNA seems to depend on running a DLNA server that has a workaround for nearly every device on the market.
I have experimented with the following DNLA / UPnP servers:
TVersity
MediaTomb
PS3MediaServer
miniDLNA
uServe
Twonky
Serviio
NONE of them are perfect, I have tested them with the following devices as DLNA clients: XBOX 360, Samsung C6500 Blueray Player, Windows media player, XBMC4XBOX, AcePlayer on iPhone.
Issues encountered:
- Suppository supported codecs will not play MKV files for example some device want the server to send the mime type mimetype="video/x-matroska" others want "video/x-mkv" so you ether need a server that has template files or one that explicitly supports your device.
- Pause does not work, no really on some media servers pause does not work for my Samsung
- Fast forward / skip does not work on many media types and devices
- Random disconnects due to unexpected commands (some devices are hyper sensitive to what commands are expected and time out if commands take longer than ms to complete
- media thumbnails, very few of the servers seem to support this, and it can also depend on the devices expected image size restrictions if it works (both my xbox with the new dash and my Samsung display thumbnails with serviio)
- codec supported but not the container... really good media servers will strip an unsupported container format and report a false one to the device along with supported streams... not exactly trans-coding, just stripping... It takes less resources (ps3mediaserver, serviio do this as well as trans-coding).
- DNLA search ( so far I haven't found any device and server combination where this works)
- basic DLNA is just a list, if you want nice organized virtual folders you need a good DLNA server.
before purchasing ANY device, go search for it in your DLNA servers forums and over at
http://www.avsforum.com/, it is a good way to find out which devices have a POS UI (most of them in the $100 range) and what issues users are having.\
FYI my Xbox 360 and Blueray player both have high Wife Approval factors are near your price range and do other stuff... the Blueray player has lost some favor however since I moved my media server to the basement and started having issues with it over WiFi.
Since I am setting up a second TV in my house and am basically broke (TV was over budget but too good of a dial) YES, I have been looking at the devices in the $100 range as well I was looking at what some SmartTVs had built in playback IE spending an extra $100 up front for the features and always came back with ISSUES when following up on the devices, Especially for your requirement of 1080p MKV, sticking to Xvid just about anything works, but you are limited in the quality available.