Feb 06 AT 10:25 AM Anthony Domanico 19 Comments

Verizon and Redbox to bring physical and streaming video service in 2012


Verizon and Redbox have announced this morning that they plan on bringing a Netflix competitor to market in 2012 via a joint venture between the two companies. Verizon will be the majority shareholder in the joint venture with a 65% ownership stake to Redbox’s 35%.

The service would provide both physical media (DVDs and Blu-Rays) and online streaming video to subscribers, though whether these would be lumped together or sold as separate packages (a la Netflix) has not yet been announced.

Also missing from this morning’s press release is any word on pricing. The cheapest physical plus streaming option on Netflix is $16 per month, and we don’t expect the Verizon-Redbox offering to differ much from that number. Verizon-Redbox will offer support for mobile devices, though whether or not non-Verizon branded devices will be able to get in on the action remains to be seen.

Though the announcement certainly brings up more questions than it answers, one thing’s for sure: by the end of the year, consumers will have yet another choice when it comes to their video media consumption. We’ll bring you more details of the Verizon-Redbox joint venture as new information becomes available.

Show Press Release

Verizon and Coinstar’s Redbox Form Joint Venture to Create New Consumer Choice for Video Entertainment

Joint Venture Will Offer the Best of Both Worlds – Physical and Digital – to All Consumers Nationwide

NEW YORK, Feb. 6, 2012 /PRNewswire/ — Verizon and Coinstar, Inc. today announced the formation of a joint venture that will create a new choice for quality- and value-conscious consumers seeking a simple and affordable way to access the video entertainment they crave. The venture’s services will offer all of the convenience, simplicity and value of Redbox® new release DVD and Blu-ray Disc® rentals combined with a new content-rich video on-demand streaming and download service from Verizon.

The joint venture plans to introduce the product portfolio in the second half of 2012. It will offer subscription services and more in an easy-to-use, flexible and affordable service that will allow all consumers across the U.S. to enjoy the new and popular entertainment they want, whenever they choose, using the media and devices they prefer. Additional brand and product information will be revealed in the coming months.

“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.

“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.”

This venture between Verizon and Redbox will create the kind of national multi-platform product that customers are demanding from video entertainment service providers. It 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.

“The joint venture will combine the accessibility and value of Redbox with Verizon’s vision for a borderless lifestyle — where consumers easily accomplish what they want or need to do, on their terms, through the power of the network,” said Mudge. “Together, we are erasing old technology boundaries, freeing people to spontaneously enjoy the entertainment they want, whenever they choose, using the devices and media they prefer, at home or away.”

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.

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.

Via: Engadget

Anthony loves all things technology, from hardware to apps and games. You can connect with him via Google+ or Twitter by clicking one of the fancy doo-dads above.

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  • Jorge Vieira

    Knowing verizon and since they have 65% they will prob make it verizon services only.

    • Jeff Pan

      Plus it is going to be priced high

  • delinear

    I hope all of these Netflix competitors don’t lead to a horribly fragmented market where we have to subscribe to five or six services in order to get all the content we want. Competition can be good, but it’s when deals are done for exclusive content that we lose out as customers.

    • Jeff Pan

      And the Hollywood studios would make sure that content is scattered across different platforms so that none of them get an upper hand over distribution.

  • spazby

    More details needed to form an opinion….

  • greeny42

    Between my Netflix, Amazon Prime, Free Youtube videos, and DVR… I’m all set thanks.

  • Richard Yarrell

    Yeah enough content exist on my Galaxy Nexus I won’t be needing these services from verizon..


    i spend a good 10 ucks a month on redbox already a month.. ii would have taken a look to see, but its most likey going to be verizon only, so blah

  • Max.Steel

    Don’t forget you have to mail a pound of your flesh every month…

  • Samir Shah

    Verizon knows that she just can not be a pipe supplier anymore. What took her so long?

  • Steve Nutt

    Maybe slightly off topic, but seeing as this is probably another US only thing and I’m UK based (and it’s talking physical/digital)…

    Has anyone seen the Tesco+blinkbox thing? Basically in the UK if you buy a movie from Tesco (i.e. the UK’s version of Walmart – although strictly speaking that’s Asda, seeing as Walmart own them), then you also get the same movie from blinkbox, to stream online (or download) – http://www.tesco.com/blinkbox/

    To me this is the way all physical content should go, i.e. if I buy a book or magazine, or newspaper, I want to be able to view that on my tablet, phone, PC as well as having the physical thing, i.e. a true buy once use anywhere approach. But I normally don’t want and don’t see the point of a subscription to these things, I don’t “consume” enough stuff from one source for that type of thing.

  • Billy

    This could be cool. Hopefully, it isn’t VZW only and just turns into a Netflix competitor … although I do love my Netflix streaming. It will be interesting to see what services they offer and how it is structured.

  • Slith

    Verizon will price it out of the competitive range or make it exclusive.

  • jsweetser2

    It would be pretty awesome to pay the same fee, $1.28 per movie and have it stream to my device for 24h. If I think about it, there’s no more required overhead, just storage for the movies, which i’m sure someone already has waiting. So in essence, there’s not much reason (except more profit) to increase the price, OR make it subscription based. RedBox essentially is the option for those that DON’T want a subscription – and thus having an app subscription service would tear apart their Mission Statement. And if it’s exclusive on Verizon i wouldn’t be surprised. Verizon is making moves to dominate the market soon. They have more phones, better phones (in some cases), great wireless service, more wireless service (argueably), and very solid customer service.

  • yankeesusa

    I dont like verizon when they start something like this because they make it into an extra cost thing for their own customers instead of a perk. As for redbox, its good to see them expand even with all the companies trying to block them from releasing rentals as soon as they go on sale. I hope they stick it to them.