Verizon to set up streaming service with Redbox
The global broadband and telecommunications company Verizon Communications Inc. says it will start a video streaming service throughout US later this year in cooperation with Redbox and its DVD rental kiosks, challenging Netflix.
Verizon and Coinstar Inc., Redbox’s parent, say the service will be national and available to non-Verizon customers. It adds another leg to Verizon’s quest to become a force in home entertainment, and looks set to compete to some extent with the cable-TV services it already sells.
Verizon has its own cable-TV service, called FiOS, in some areas. Its Verizon Wireless subsidiary has also signed a deal to sell service from Comcast Corp. and other cable companies in its stores.
With the Redbox venture, Verizon is breaking ranks with the cable and satellite industry, which makes its own video streaming services available only to people who also subscribe to its traditional TV feeds. They don’t want households switching to Internet-only services, which are cheaper — Netflix charges $8 per month for its video streaming plan.