In what could become a serious new competitor to Netflix, Verizon Communications and Coinstar announced the formation of a joint venture will combine Redbox's new release DVD rentals with a new video-on-demand streaming and download service from the telco.
Verizon owns 65% of the JV with Redbox holding a 35% ownership share at the outset. The companies did not disclose how much they are investing in the venture.
The joint venture – as yet, there's no announced name for it – plans to launch its initial products in the second half of 2012. The Verizon-Redbox service will offer subscription services that 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."
Verizon and Coinstar said they will announce additional brand and product information in the next few months.