Redbox and Verizon join forces to take on Netflix

By on February 6, 2012, 1:00 PM

Coinstar’s Redbox and Verizon Wireless have ended months of speculation that suggested the two would join forces to compete with Netflix. The duo put out a press release announcing the joint venture that combines new release DVDs and Blu-ray discs from Redbox with video on-demand streaming and download services from Verizon.

The press release is a bit short on details but we are told to expect a product portfolio in the second half of 2012. The subscription service is designed to make the process of watching what you want flexible and affordable using your preferred device.

Unlike Dish Network’s Blockbuster Movie Pass, the venture isn’t exclusive to Verizon customers. Blockbuster Movie Pass requires a subscription to a Dish Network satellite television package and isn’t available separately.

It remains to be seen if the new service will be able to ink licensing deals with big media companies regarding DVD rentals. As All Things D points out, media companies have clashed with Netflix in court and most recently, Redbox has said they won’t work with Warner Bros.’ new 56-day DVD rental window.

Netflix suffered an embarrassing 2011 when the company raised rates, split their services into two entities, renamed the DVD-by-mail service to Qwikster then reneged on that decision. Since then, however, the streaming video giant has regained nearly all of the 800,000 subscribers that left the service last summer.

From the outset, Verizon will hold a 65 percent ownership share in the LLC with Redbox holding the remaining 35 percent stake. Neither company announced pricing or other details; those are expected sometime later this year.




User Comments: 6

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spydercanopus spydercanopus said:

Sounds awesome. Netflix is ridiculously expensive and waiting on the mail man is about as much fun as watching paint dry.

Just hope they allow paypal and hopefully a method for pre-paid debt cards.

Aboutto said:

ridiculously expensive ? I get 2 DVDs a week, 8 a month. So it's cheeper than redbox, plus the selection sucks at redbox, only thing that sucks with Netflix is there streaming selection, but my kid watching it everyday because it's loaded with nick stuff, I say gl to you two and hope you offer a nice selection.

Guest said:

I tried to sign up for Netflix however they didn't like the Visa gift card (even with enough money on it for a full year) nor a Visa debit card I had. All other online services I have used have taken these. Oh well, perhaps Redbox/Verizon will. In any event competition is good for the consumer.

treetops treetops said:

pricing and details are really the only thing that matters and verizon over charges so i really doubt they will give netflix any competetion

Guest said:

legalpitbull : i am physically disabled, can't really afford to go to the movies very much, and my symptoms would make it difficult anyway. i just joined netflix, after the free 30 day trial. one of my regrets, is that I didn't join sooner. my wife, and i are watching movies, one after another. also, i can watch movies, on my smartphone, making things even sweeter. we have verizon wireless, plus redbox machines all over the place, so this is a win-win. we do believe the movie studios having redbox, and netflix wait 28, and 56 days, is driven by greed. dvd streaming, and renting, are going to continue growing, by leaps, and bounds. we hope everything is streaming, in the not-to-distant-future.

tipstir tipstir, TS Ambassador, said:

I use netflix the prices are low for streaming. Redbox just getting greedy to merge with the mega giant. All this mean prices will go up and we customers just go with who's cheaper.

$7.99 x 12 = redbox was $1.50 per rental but you have to take it back the next time around a certain time then if you don't you get charged. Blockbuster charges $3.00 same sort of policy then you have Comcast Ondemand. Amazon Video Ondemand prices can be SD video $3.99 and HD Video $4.99 to stream the video in 1080p. Sounds high.

Hulu Plus charges $7.99 per movie but there are ads to be watched even if you pay you have to watch ads.

Amazon Prime with Amazon Instant Videos Prime is free but it cost $79 bucks. Most of what you get is old movies and tv shows. If you want new stuff you have to pay $1.99 per show and movie prices are listed above. Amazon Prime does give you movies for free too..

Do your match and see how much it's costing you. Does add up.

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