Telecommunications giant Verizon is partnering up with Coinstar's popular Redbox subsidiary to roll out an online streaming video service in the second half of 2012. It will be an "affordable" subscription-based service "that will allow all consumers across the U.S. to enjoy the new and popular entertainment they want, whenever they choose, using the media and devices they prefer," the two companies stated in a joint announcement.
This is something Coinstar has wanted to do for a couple of years now, and it didn't take much coaxing to get Verizon on board, which as been increasingly interested in streaming media as of late. Verizon will leverage its industry-wide relationships with content providers, its cloud computing technologies, and its IP network infrastructure to distribute video-on-demand content to its customers, the two companies said.
"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.
The announcement confirms earlier rumors of Redbox and Verizon teaming up, while at the same time raising several questions, such as how much the service will cost and if it be tied to Verizon's wireless service.