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Verizon Chooses Redbox for Video Streaming Service

By - Source: Verizon | B 10 comments

Verizon finally announced its Netflix killer, reporting that Redbox will provide the DVDs and Blu-ray discs.

On Monday New York-based Verizon Communications announced a joint venture with Redbox parent company Coinstar that will bring a subscription-based multi-platform Netflix competitor to the market in the second half of 2012. Redbox will provide the DVD and Blu-ray rental aspect whereas Verizon will supply the video streaming and download portion.

Due to competitive reasons, the duo refrained from revealing details surrounding the joint venture, but promised to uncover more information later this year. However Verizon said it will have a 65-percent ownership share in the service while Bellevue, Wash.,-based CoinStar will claim a 35-percent share. Both promise that consumers will be able to enjoy new and popular entertainment they want "whenever they choose, using the media and devices they prefer."

"When you consider the core elements the parties bring to this venture - our powerful brands; our national rental kiosk footprint; our anytime, anywhere network presence; and our mutual commitment to customer-focused innovation - it's clear that Verizon and Redbox are a powerful entertainment team," said Bob Mudge, president of Verizon consumer and mass business markets.

The reasons why this could be bad news for Netflix should be obvious: Redbox kiosks are seemingly on every street corner (there are four just blocks away). Plus there is Verizon's already well-established connections with Hollywood studios and networks thanks to FiOS and its own video streaming offering for Verizon Wireless. This could bring extra content to those kiosks that Coinstar/Redbox previously didn't have access to.

Assuming that Verizon Wireless will be part of the overall big picture, it may be possible that a subscription service can be billed directly to a Verizon Wireless customer's bill much like Slacker Radio, Rhapsody, Rdio and others services. There's also a good chance account holders will simply be able to head down to the nearest kiosk and pick up a physical disk without having to pay a rental fee. This would not only beat Netflix in terms of physical delivery times, but will also be highly competitive with Blockbuster which in some places share the same street corner.

"Consumers rely on Redbox for the latest new release movies at a great value, and our joint venture with Verizon will enable us to bring them even more value by offering expanded content offerings and greater flexibility for how and when they enjoy entertainment," said Paul Davis, chief executive officer of Coinstar, Inc.  "This alliance is the result of a deliberate and strategic process to identify a partner who shares our commitment to delivering innovative solutions to consumers.  We look forward to rolling out the shared benefits this venture will bring to consumers, retailers, and shareholders."

The joint venture will reportedly leverage Verizon's industry-wide relationships with entertainment content providers, its advanced cloud computing technologies and state-of-the-art IP network infrastructure to distribute video on-demand content to its customers.

Verizon's conference call on Monday morning did not produce any additional details, merely regurgitating the press release.

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  • 3 Hide
    sporkimus , February 6, 2012 5:18 PM
    If you want to create a Netflix killing company, then create a streaming service that offers new release movies without costing a fortune. Netflix's streaming service is junk. Yeah it might only be $8 for the "streaming only" plan, but the movies offered are either old or B-rated... or both. I've had an extremely difficult time finding anything new and worthwhile to watch. Anything that's a new release, I'm either forced to go out to a Redbox kiosk to get (and hope that it's even in stock) or rent from Comcast (at $5-$6 per movie).
  • 6 Hide
    soccerdocks , February 6, 2012 5:30 PM
    sporkimusIf you want to create a Netflix killing company, then create a streaming service that offers new release movies without costing a fortune. Netflix's streaming service is junk. Yeah it might only be $8 for the "streaming only" plan, but the movies offered are either old or B-rated... or both. I've had an extremely difficult time finding anything new and worthwhile to watch. Anything that's a new release, I'm either forced to go out to a Redbox kiosk to get (and hope that it's even in stock) or rent from Comcast (at $5-$6 per movie).


    Netflix wants that. Its the movie studios that need the convincing.
  • -2 Hide
    shmung , February 6, 2012 5:36 PM
    If Verizon would hurry up and come in our area id love to start using it
  • Display all 10 comments.
  • -2 Hide
    Trialsking , February 6, 2012 6:20 PM
    Competition is good! Lower prices
  • 3 Hide
    alidan , February 6, 2012 7:39 PM
    sporkimusIf you want to create a Netflix killing company, then create a streaming service that offers new release movies without costing a fortune. Netflix's streaming service is junk. Yeah it might only be $8 for the "streaming only" plan, but the movies offered are either old or B-rated... or both. I've had an extremely difficult time finding anything new and worthwhile to watch. Anything that's a new release, I'm either forced to go out to a Redbox kiosk to get (and hope that it's even in stock) or rent from Comcast (at $5-$6 per movie).


    i happen to like b movies more than i like most blockbuster movies. personal taste, but yea... netflix at least has me as its audience...
  • 1 Hide
    michaelahess , February 6, 2012 8:48 PM
    No way will this work unless they stop charging so much for wireless data plans, and overages. Great you get a Netlix competitor plan but can't actually use it on your Verizon phone/tablet unless you pay 10 times what it's worth. Sounds awesome! I'll stick with my non 3/4g tablets, cable internet and netflix/amazon prime thank you very much. If I'm out and about, I'm certainly not going to be watching a movie anyway, otherwise I'd have stayed home.
  • -2 Hide
    otacon72 , February 6, 2012 10:13 PM
    I used to work for Coinstar and we were screaming for RedBox to get a streaming service years ago.
  • 1 Hide
    TheZander , February 7, 2012 4:13 AM
    If they make it similarly priced to Netflix's streaming service, AND (most importantly) make the streaming of their specific service NOT COUNT against your pithy 2GB monthly allowance, then it will be well worth it.
  • 1 Hide
    cknobman , February 7, 2012 12:36 PM
    sporkimusIf you want to create a Netflix killing company, then create a streaming service that offers new release movies without costing a fortune. Netflix's streaming service is junk. Yeah it might only be $8 for the "streaming only" plan, but the movies offered are either old or B-rated... or both. I've had an extremely difficult time finding anything new and worthwhile to watch. Anything that's a new release, I'm either forced to go out to a Redbox kiosk to get (and hope that it's even in stock) or rent from Comcast (at $5-$6 per movie).


    You only call Netflix's movie selection old and B-rated because you are one of the sheep that look for so called "blockbusters" which the majority of them are absolute crap anyways.

    Sure Netflix has a bunch of junk but there are also quite a few really damn good movies as well . You just need to learn to expand your taste a little and try something outside of the big name american "blockbuster" movies.

    Ip man (1 and 2) are great examples of really really good movies that most people wont try because its not an American film.
  • 0 Hide
    jblack , February 7, 2012 7:37 PM
    I use Netflix mostly to watch TV series. And Netflix is already supported on a ton of devices.
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