Verizon and Redbox Develop New Video Service to Battle Netflix

Verizonand RedBox develop new video service to fight with Netflix. What'stheir way to compete with Netflix? Read My article and know moreabout the battle between movie and video service providers.

AfterNetflix unveil its first original series, Verizon and Redbox aredeveloping a new video service to compete against Netflix, which willcombine Redbox's kiosk DVD and Blu-Ray rental service with streamingand downloadable video content made possible by Verizon's network.Specifics are scant at this point, but the new service seems primedto compete more directly with the once-thriving-now-strugglingNetflix: like Netflix, the Redbox-Verizon service will apparently besubscription-based, meaning customers will pay a flat fee for accessfor to both physical DVDs from Redbox machines and an online trove ofcontent available for both "on-demand streaming and download."

Thecompanies said that the joint venture will launch in the second halfof the year, and it will combine Redbox DVD and Blu-ray rentals withan on-demand streaming and download service from Verizon. The servicewill offer "subscription services and more," and it will beavailable on multiple platforms like smartphones, tablets, andtelevisions. Due to "competitive concerns," however,Verizon and Coinstar declined to provide details on exactly what theywill offer or how much it will cost, and did not take questionsduring a Monday morning conference call.Redbox has DVD kiosks insupermarkets, drug stores, and other locations nationwide. Customerscan reserve movies or games on their computers or smartphones, pickthem up from a nearby location, and return them when finished.According to an NPD survey from last month, Redbox is now the mostpopular source of DVD and Blu-ray disc rentals.

Netflixcustomers pay a flat fee for an unlimited amount of movies andtelevision shows, which they receive by mail or by streaming over theInternet; Redbox, meanwhile, has unleashed an army of DVD vendingmachines on the supermarkets and big box stores of America, offeringrentals on a pay-per-night basis. With its partnership with Verizonto bring content to the web, however, Redbox is entering Netflix'sterritory; the company's CEO Reed Hastings has reiterated many timesthat he believes streaming media, not the physical DVD, is the futureof his company. Redbox and Verizon join Amazon, Hulu, DishNetwork/Blockbuster, and the movie studios' Ultraviolet as upstartcompetitors looking to unseat Netflix in the streaming space.

Redboxhas kiosks at 29,000 locations nationwide, including grocery stores,convenience stores, drug stores, and at some Wal-Mart stores. "Byoffering instantly available online and mobile content with immediateaccess to physical media through rental kiosks, Verizon and Redboxwill be uniquely positioned to deliver the best of bothworldsdigital and physicalto consumers across the country,"the companies said. Netflix isstruggling after a shaky 2011, Verizon and Redbox will still havetheir work cut out for them. No mention of specific content was made,but Verizon said it will use its "industry-wide relationshipswith entertainment content providers" to ensure a good selectionof movies online.