News

Verizon, redbox partner to offer physical, digital rentals

February 6, 2012

Verizon and Coinstar's redbox are partnering to offer a streaming service to compete with Netflix.

The joint venture, set to debut in the second half of 2012, will offer all of the convenience, simplicity and value of redbox rentals combined with a new content-rich video on-demand streaming and download service from Verizon, said Paul Davis, chief executive officer of Coinstar, said in a company press release.

"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," Davis said.

The partnership will 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, said Bob Mudge, president of Verizon consumer and mass business markets.

By offering instantly available online and mobile content with immediate access to physical media through rental kiosks, Verizon and redbox will be uniquely positioned to deliver the best of both worlds - digital and physical - to consumers across the country, Mudge said.

The joint venture is a limited liability company with Verizon holding a 65 percent ownership share and redbox holding a 35 percent ownership share at the outset.

Read more about DVD kiosks.