Verizon And Coinstar Backing New Subscription Redbox + Streaming Movie Service
Subject: General Tech | February 6, 2012 - 05:27 PM | Tim Verry
Tagged: verizon, subscription service, redbox, movies
Netflix has stood at the top of the hill for quite a while now as the streaming and disc subscription service of choice despite the price hikes and Warner Brothers' stupidity in regards to the 56 day waiting period to get a DVD (although it takes only an hour to pirate...). They may have a new contender later this year; however, because, Verizon and Coinstar (the company behind Redbox) are teaming up to create a joint venture that will launch a new subscription service offering physical discs through the Redbox kiosks and streaming and download-able movies through Verizon.
The new joint venture will launch the product portfolio in the second half of 2012, according to Verizon. Further, the joint venture will be a limited liability company with Verizion holding a 65% stake and Coinstar holding a 35% stake. Neither company was willing to go into details on how much the subscription would cost or how exactly it would work at this time due to "competitive concerns." They did dole out a few small bits of information about the service, however.
Verizon's President of Consumer and Mass Business Markets Bob Mudge talked confidently about the new streaming service during a conference call to the press where he talked about putting Verizon's large Fiber to the Home (their FIOS service), DSL, and Wireless 4G LTE networks to work to deliver streaming services "to all consumers across the US" whenever they want and on the devices they want to use. Meanwhile, Coinstar will be using the thousands of Redbox kiosks in malls, grocery stores, Wal-Marts, Walgreens, and gas stations to deliver physical discs to consumers throughout the US. They are planning a single source, multi-platform, national product, and will be releasing more details as they get closer to the launch window.
It is certainly interesting, and the streaming subscription space could really use healthy competition and companies with enough weight to throw around to muscle the studios into entering the 21st century with increased streaming licenses and better contract deals. Redbox has recently revolted against Warner Brothers' 56 day waiting period in favor of obtaining the movies through other means, so the studios are not exactly friendly to renting discs much less streaming rights. Here's hoping that the new joint venture can become profitable and serve as further proof that providing a subscription service is a viable revenue stream to studios while being affordable to consumers. A commenter on another forum suggested that it would be a great idea for Verizon to incorporate the streaming service into its FIOS plans as a value add, which is a move that would certainly spread adoption and give the company a quick influx of users!
Do you think Verizon and Coinstar (Redbox) can take on Netflix?