February 7, 2012- Verizon and Redbox are teaming together to operate a movie streaming service. The move creates more competition for Netflix. Redbox, known for its bright red kiosks that rent DVDs, announced on Monday that it was joint venturing with Verizon to offer an online movie streaming subscription service.
The new digital streaming service is expected to start sometime during the second six months of 2012. Verizon will be the majority owner in the venture. Verizon will be the first cable or telecom company to offer streaming service to clients who are not current subscribers.
That is substantial change for Verizon. Up until now Verizon, like Comcast, Time Warner, AT&T and other cable and telecom providers has only gone after those customers in markets where the company already has Internet and television services. With this new venture, Verizon will be aiming at a national audience.
Prices details have not yet been announced by Verizon or Redbox however, they said it would include kiosk rentals and streaming for just one monthly subscription fee. DVD rentals at the kiosks are expected to remain at $1.20.
Both companies hope that the combination of streaming video and DVD rentals will offer customers the most complete options in the marketplace.
The two companies hope that the instant video service or kiosks will attract more clients that Netflix. Netflix offers the instant streaming service, but often time subscribers for Netflix must wait up to two days for a rental DVD to arrive in the mail.