Redbox and Verizon to Offer Streaming Movie Services
Very soon, Netflix may be facing stiff competition from the new streaming movie services that Verizon and Coinstar plan to offer. Together, the two companies will be offering services that will allow users to access streaming media and DVDs through the Redbox Kiosks, owned by Coinstar Inc. According to a recent announcement made by Coinstar, the company had taken over Blockbuster express, which is its kiosk competitor. The company had also stated that it would be using Verizon’s network services for developing innovative streaming media solutions for US consumers.
Both Verizon and Redbox believe that this partnership, between two powerful brands in the US, will help them create a powerful entertainment service for their customers. Verizon has extensive network presence throughout the US and Redbox has numerous rental kiosks spread across the nation. Added to that, Coinstar’s acquisition of Blockbuster Express kiosks will make it easier for the company to make its presence felt in the market.
According to Coinstar’s CEO Paul Davis, a number of people who rely on Redbox for the latest movie and entertainment services will be able to get faster and better service through Verizon’s network. He also said that this innovative project will benefit not just the company and its shareholders but also retailers and consumers. Also, the companies are aiming to remove the old technological boundaries with Verizon’s vast and efficient network and Redbox’s reach, so that consumers can freely and conveniently enjoy entertainment anytime and anywhere.
As of now, the companies have indicated that they would be introducing a product portfolio, and that the services would be offered through subscription. Details of the service – as to how the streaming media service will be bundled with Verizon’s subscription plans or what kind of services would be offered – have not yet been released by the companies. As of now, all that is known about the joint venture is that Verizon has 65% stake in the partnership, while Coinstar has the remaining 35%.
How the movie streaming service works
Verizon and Redbox’s joint streaming movie service works more or less like that of Netflix. People who subscribe to this service will get to choose between streaming media and DVDs, which can be returned at any of the Redbox kiosks that are conveniently located near drugstores and supermarkets like Wal-Mart. Subscribers would be able to rent DVDs or video games through affordable plans.
Service to be introduced in 2012
The new service would be launched in the second half of this year and would be subscription based. With this new service, the companies aim at providing affordable and easy to use streaming movie service within the US. This means, with this streaming service, consumers in the United States would be able to access their favorite, as well as the latest, entertainment programs as and when they want. While the idea of being able to access the latest entertainment conveniently, at affordable costs, is very appealing, US consumers have to wait till late 2012 to know how much they can benefit from the alliance of these two big brands.