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Wednesday, December 12, 2012
Verizon and Redbox To Launch Video Streaming Service

Redbox kiosks owner Coinstar and Verizon Communications said they will launch a video streaming service later this month to take on video rental giant Netflix.

The venture's service, 'Redbox Instant by Verizon', will offer the Redbox kiosk new release DVD and Blu-ray Disc rentals combined with a new video on-demand streaming and download service from Verizon. The service would launch as a public beta later this month, the companies said in a statement.

Subscriptions will start 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.

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

"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."

The joint venture is a limited liability company with Verizon holding a 65 percent ownership share and Redbox holding a 35 percent ownership share at the outset.

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