Verizon (NYSE: VZ) wants a piece of the streaming video market that Netflix (Nasdaq: NFLX) has dominated for so long and it's found a way in by striking a new partnership with Coinstar, the operator of the Redbox video delivery service.
Verizon & Coinstar's business case for joining forces.
As it looks for a way to expand its video capabilities in markets where it does not currently operate FiOS TV, Verizon will hold a 65 percent stake with Redbox holding a 35 percent stake in the venture.
Since the service would be available to anyone that has a broadband connection, the service would provide Verizon a weapon to compete against other ILECs outside of its territory like AT&T (NYSE: T) and CenturyLink (NYSE: CTL), which have been trying to woo consumers with their respective IPTV offerings.
While neither Verizon nor Coinstar have not released many details about what the actual service will consist of when it's launched, the service will likely offer consumers who have a broadband connection the ability to view video titles online from their PC, gaming devices and of course on their wireless phones.
Bob Mudge, president of Verizon's consumer business, told Bloomberg that Coinstar and Verizon are "still working through the streaming rights deals with different companies."
Verizon would not reveal if the new service would offer only films or TV shows.
Already operating 34,000 kiosks in the U.S., Coinstar's Chief Executive Officer Paul Davis added it has "36 million e-mail addresses" it can reach out to talk to about the new service.
- see the release
- Bloomberg has this article
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