Verizon Communications Inc and Coinstar's Redbox unit have formed a joint venture to sell video services aimed at competing against video rental giant Netflix Inc.
The venture will combine the Redbox DVD rental kiosk business with an Internet video offering from Verizon, including mobile offerings, in the second half of the year.
On Monday, Redbox-operator Coinstar Inc moved to cement its hold on its business of renting DVDs from automated kiosks, announcing it will buy rival NCR Corp's machines and video inventory for up to $100 million. That, and better-than-expected quarterly results, pushed the stock 13 percent higher after hours.
However, investors in Verizon and Coinstar were unimpressed as the pair offered little detail about the service. Netflix shares ended up 2.2 percent, reversing a decline that came directly after the news.
The new service's price will start from around $6 a month for movie streaming and one DVD rental at a time from the Redbox kiosks, according to a person familiar with the plan.
Netflix's pricing currently starts at $7.99 for either streaming only or a single DVD by mail. To get both the streaming and DVD rental package prices start at $15.98.
Verizon and Redbox declined to comment on the pricing.... Source/Origin >> Read More
