Redbox to launch video streaming service this month

Wed Dec 12, 2012 8:07pm IST

Customers rent DVD movies from a redbox video kiosk in Burbank, California, May 8, 2011. REUTERS/Fred Prouser/Files

Customers rent DVD movies from a redbox video kiosk in Burbank, California, May 8, 2011.

Credit: Reuters/Fred Prouser/Files

Related Topics

Stocks

   

REUTERS - Redbox kiosks owner Coinstar Inc CSTR.O and Verizon Communications Inc (VZ.N) said they will launch a video streaming service later this month to take on video rental giant Netflix Inc (NFLX.O).

The companies are set to launch their Redbox Instant video streaming service more than ten months after they first inked a joint venture.

Coinstar shares were up 3 percent at $52.50 on the Nasdaq on Wednesday morning. While Netflix shares were down marginally at $86.24.

The new service, 'Redbox Instant by Verizon' would launch as a public beta later this month, the companies said in a statement.

The service, which combines the Redbox DVD rental kiosk business with an Internet video offering from Verizon, will sell subscriptions starting at $8 per month for unlimited streaming combined with four one-night credits for DVDs.

Redbox Instant would also offer a $9 unlimited streaming option that would allow users to rent Blu-ray discs.

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.

Coinstar and Verizon had formed their joint venture in February to sell video services in a market that is dominated by Netflix but also has a number of new entrants including Amazon.com Inc's (AMZN.O) Prime, Hulu Plus and HBO Go.

Redbox Instant subscribers would have access to content from Warner Brothers Home Entertainment (TWX.N) and titles from Paramount Pictures (VIAB.O), Lionsgate (LGF.N) and MGM, through a license deal with cable network Epix.

(Reporting by Himank Sharma in Bangalore; Editing by Supriya Kurane)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Wipro Results

People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro sees rosier end to year as U.S. clients spend

India's third-biggest software services firm Wipro Ltd , under pressure to improve lacklustre sales growth, said it saw a rosier end to the year as more confident U.S. clients increase spending.  Full Article 

Reuters Showcase

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Cyber Attack

Cyber Attack

China-backed hackers may have infiltrated Apple's iCloud - blog.  Full Article 

User Data Security

User Data Security

Apple CEO discusses security with top Chinese official amid hacking claims - Xinhua.  Full Article 

Patent Wars

Patent Wars

Big Tech winning battle with 'patent trolls'.  Full Article 

Record Season

Record Season

FedEx expects record peak volume of 22.6 million packages on Dec. 15.  Full Article 

Yahoo Earnings

Yahoo Earnings

Yahoo ekes out Q3 revenue gain despite display ad weakness.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage