The much-rumored Verizon-Redbox partnership is no longer just speculation.
The telco giant today officially announced a joint venture with Coinstar – Redbox's parent – that the companies say will create a new choice for consumers who want a "simple and affordable way to access the video entertainment they crave."
The joint venture will offer subscription services that combine Redbox's new-release DVD and Blu-ray offerings with a new video on-demand streaming and download service from Verizon. Look for it to make its debut in the second half of the year.
Verizon says the streaming service will be available on multiple devices and that more details will be revealed in the months leading up to launch.
"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.
Verizon expects the venture to be successful based on the carrier's industry-wide relationships with entertainment content providers, its advanced cloud computing technologies and IP network infrastructure to distribute video on-demand content to its customers.
By offering instantly available online and mobile content with immediate access to physical media through rental kiosks, Verizon and Redbox say they will be uniquely positioned to deliver the best of both worlds – digital and physical – to consumers across the country.
Verizon will own 65 percent of the partnership and Redbox 35 percent at the outset.
The announcement comes at a time when OTT industry leader Netflix is recovering from a couple of bad PR moves that has seen its stock nosedive in recent months. It will be interesting to see how effectively this first-of-a-kind move by a telco can compete.
