Verizon and Redbox Team-Up to Take on Netflix with their own Streaming Service

[dgstorm]

Later on this year, Verizon and Redbox plan to roll-out their own streaming video service to directly compete with Netflix. The big advantage that Verizon will have in this arena is that their vast network is superior to Netflix, so the streaming should be a vast improvement. The press release doesn't make it clear whether the service will be exclusive to Verizon customer's or not, but it does seem to indicate that they want to reach the broadest audience possible, so more likely it is the later.

They also didn't give any specific details on pricing or availability, although they did say it would roll out the second half of 2012. Redbox's physical kiosks will still offer the same service for those who prefer physical media. The new collaboration is a joint venture in which Verizon will control a 65% share, and Redbox will hold 35%. It appears that Netflix will have some serious competition very soon, and this is likely a very smart move on Verizon's part. Here's the 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.

Source: PhanDroid

 

[Captmilk]

This is awesome news..

 

[pc747]

hopefully, like netflix, it allows rooted devices to stream movies. Those on vzw's network hope you have wifi around if not and you are tiered I am sure vzw will have no problem selling you more data.

 

[SquireSCA]

This is why they got rid of the Unlimited plans. They have wanted to get into the streaming content business. For Netflix users, you have to worry about bandwidth and caps... If you switch to VZW's offering, they won't count it towards your tier...

 

[thaDroidz]

It won't count? Really that sounds hard to believe ...

Wondering if one subscription will cover multiple devices?





posted tomorrow using the space time continuum app on my D1...

 

[SquireSCA]

For a couple reasons I don't think it will count. If they sell a service that forces you to pay more data fees, I think there would be some backlash.

By not having theirs count, it gives them a big edge over Netflix...

 

[rdgxray]

I find it hard to believe they are going to "compete " with netflix. Verizon doesn't offer any service at a reasonable price. Most likely their cheapest package will be twice as expensive as a similar netflix plan. I have no hard facts though. Netflix teamed with xbox live and since I already subscribed to both, I got a new service available on my xbox for no additional fee. Kudos to netflix and xbox live for giving you more for your money. Verizon could really increase customer satisfaction if they did the same, instead they charge an additional fee for every little additional service they offer.

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[mountainbikermark]

Great. Another bloatware app on my next phone. I just don't see me streaming movies to a 4"screen. It would be very nice in a tablet though
I'll have to see it in writing before I'll believe it's free data to use it on The Network

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[SquireSCA]

Why is it so hard to believe? They charge you for minutes but give you free minutes to other VZW customers, even though it costs them nothing to let you talk to other networks...

The FCC says that they cannot block other vendors who have competing apps. However, they can choose to not charge you for the data if you use their services, making theirs a lot more attractive...

They charge us twice for the same data even when we stay under our purchased caps and tiers(tethering hot spot)... so why wouldn't they do this? If they offer Redbox but don't count it towards your data tier, I think a lot of people would switch from Netflix, or ones that wanted Netflix for their mobile devices would be more likely to consider RedBox...

 

[rdgxray]

I believe they are going to do it, but compete with netflix? How? The netflix app is free. I already have netflix to watch at home on xbox, computers, ipad and android tablet. Netflix allows 12 or so devices to be enabled for use simultaneously. All 4 members of my family can watch different shows at the same time. Is verizon going to work on ipad and my computer? I have unlimited data so using their network to watch on my phone is not a problem. If you had only 2 gb data plan and their service was comparable to netflix with data being free for this service maybe some people would do it. Is the charge going to be per phone or plan? $10 for each phone maybe? Could get expensive quick! My unlimited instant view plan with netflix is less than $20. I don't see verizon offering anything like this for less than $20 for 12 devices simultaneous use.

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[dgstorm]

I believe they are going to do it, but compete with netflix? How? The netflix app is free. I already have netflix to watch at home on xbox, computers, ipad and android tablet. Netflix allows 12 or so devices to be enabled for use simultaneously. All 4 members of my family can watch different shows at the same time. Is verizon going to work on ipad and my computer? I have unlimited data so using their network to watch on my phone is not a problem. If you had only 2 gb data plan and their service was comparable to netflix with data being free for this service maybe some people would do it. Is the charge going to be per phone or plan? $10 for each phone maybe? Could get expensive quick! My unlimited instant view plan with netflix is less than $20. I don't see verizon offering anything like this for less than $20 for 12 devices simultaneous use.

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I think we are making the assumption that the Verizon streaming service will necessarily be directly tied to their wireless plans and services. It is entirely possible that the streaming movie service will be completely separate from that and be similar to Netflix' implementation via a website portal. They would still be using their own internal network infrastructure for hosting, that is likely superior to what Netflix uses, but would simply stream over the web. Of course, right now this is just conjecture, as we really don't have enough facts or meaty details yet.

 

[pc747]

I find it hard to believe because this is the same vzw that hark on people for tethering on unlimited data because its not authorized, but charge people on tier data a tethering plan . Vzw is in the business to make money and their revenue stream is.data and calling plans. They see this as a money maker because if you are on tiered data and you want to stream movies you are gonna need a higher tier. If you have a netbook then you gonna need the mobile hotspot plan, mifi, or get a 4g tablet from them. Vzw is seeing this a money making idea and yes you can bet it will be a bloatware app. Vzw is trying to make a profit and this is a good way to do it.

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[JohnnyS101]

I think we are making the assumption that the Verizon streaming service will necessarily be directly tied to their wireless plans and services. It is entirely possible that the streaming movie service will be completely separate from that and be similar to Netflix' implementation via a website portal. They would still be using their own internal network infrastructure for hosting, that is likely superior to what Netflix uses, but would simply stream over the web. Of course, right now this is just conjecture, as we really don't have enough facts or meaty details yet.

I agree, it could be just another netflix, but then why Verizon?

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[dgstorm]

I find it hard to believe because this is the same vzw that hark on people for tethering on unlimited data because its not authorized, but charge people on tier data a tethering plan . Vzw is in the business to make money and their revenue stream is.data and calling plans. They see this as a money maker because if you are on tiered data and you want to stream movies you are gonna need a higher tier. If you have a netbook then you gonna need the mobile hotspot plan, mifi, or get a 4g tablet from them. Vzw is seeing this a money making idea and yes you can bet it will be a bloatware app. Vzw is trying to make a profit and this is a good way to do it.

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You may be right pc747, but I hope your are wrong. It would be cool to see a decent competitor to Netflix.

 

[thaDroidz]

$8 multiple devices they wont beat it!