The business has not been named with regards to the partnership, but it is definitely going to challenge Netflix. Redbox has 35,000 kiosks. These will offer movies for a flat monthly fee with the digital options combined.
The companies feel this is the only way for consumers to understand the wide selection of movies out there. Redbox has a 65% share while Verizon will have 35%. The parent company Coinstar will be in charge with a $14 million stake.
This venture between Verizon and Redbox will create the kind of national multi-platform product that customers are demanding from video entertainment service providers. It 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.
“The joint venture will combine the accessibility and value of Redbox with Verizon’s vision for a borderless lifestyle – where consumers easily accomplish what they want or need to do, on their terms, through the power of the network,” said Mudge. “Together, we are erasing old technology boundaries, freeing people to spontaneously enjoy the entertainment they want, whenever they choose, using the devices and media they prefer, at home or away.”
By offering instantly available online and mobile content with immediate access to physical media through rental kiosks, Verizon and Redbox will be uniquely positioned to deliver the best of both worlds – digital and physical – to consumers across the country
Netflix has had several issues in the last year with streaming. Part of the challenge is the rights issues they face. It takes a high capital to be able to pay for the rights to show the movies. This is why most of the streaming videos are independent films, older films, and international films with lax laws compared to the US. Redbox has new films available on DVD and they hope to offer these same videos faster than Netflix in a streaming mode.
Tags: DVD, Netflix, Online Video, Redbox, Streaming Media, Verizon
Filed in: Content Providers