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An announcement that Verizon and Redbox will team up to offer consumers a streaming media and Blu-ray/DVD rental service hasn’t done much to expound upon details first rumored last year. The new content distribution service will focus on the power of Verizon’s network, an element of support lacking from Netflix, the media provider the two companies are looking to challenge head-on. What isn’t clear is whether or not the service will be available to those not subscribed to Verizon services, and which of those Verizon services will be covered. It is likely that the communications giant will focus on all channels, from FiOS TV to wireless, and look to reach all screens from the living room to the mobile phone. Physical kiosks will continue to provide discs for those looking to rent a DVD or Blu-ray movie. The service will launch sometime in the second half of the year.
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.
If people can’t access it regardless of ISP, this fails instantly. They also need to make some really good deals with content providers or end up with the same sucky streaming library as Netflix.
But if they can get a decent selection of shows/movies, get an app on the Xbox, and allow me to pick up movies from Redbox machines without paying extra, I’m very interested.
yep, this is an automatic fail if it’s verizon only.
As a Verizon customer, I see no issue :p
I am a verizon customer too at the moment (I hold no loyalty to anyone – was with tmobile before and will switch back if reasons are compelling) – but I don’t think it’s fair (and lacks sound business sense) that something which is basically software should be given to one carrier exclusively.
That sucks for Tmobile customers
The thing is…will they put a preference on their stream??
cause everyone knows verizon hates netflix traffic. hmmm…
Net neutrality. They can’t.
well if they are going to offer a subscription for movies, i hope they will raise the data cap with the subscription. just like they do with mobile hotspot.
You know neflix admitted their mistake…..I think I’m going to forgive them and go back to them. Sorry, Vierzon…..no go for you.
With carriers limiting 3G/4G data, this whole idea is pointless. This would only work in an unlimited environment. Or if they made this specific traffic not count towards your quota. Which they won’t do. Cause if they can hit you up for a movie rental AND data overages, that’s a win-win for them!