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