Redbox, Verizon to Launch New Entertainment Concept
NEW YORK -- Redbox has teamed up with a telecommunications giant in its fight against Netflix.
Coinstar Inc., parent company to Redbox DVD, Blu-ray and video game kiosks in convenience stores, joined forces with Verizon Communications Inc., the companies announced in a joint statement. The deal will allow customers to rent physical movies or games from the kiosks, as well as download streaming content online.
The new combined service is expected to debut in the second half of the year, the joint press release said. Verizon will own 65 percent of the joint venture and Coinstar will own 35 percent.
"Consumers rely on Redbox for the latest new release movies at a great value, and our joint venture with Verizon will enable us to bring them even more value by offering expanded content offerings and greater flexibility for how and when they enjoy entertainment," said Paul Davis, CEO of Coinstar. "This alliance is the result of a deliberate and strategic process to identify a partner who shares our commitment to delivering innovative solutions to consumers. We look forward to rolling out the shared benefits this venture will bring to consumers, retailers, and shareholders."
Bob Mudge, president of Verizon's consumer and mass business markets, added that once the new product is launched, consumers can download entertainment content on their own terms.
"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," said Mudge.