Verizon to set up streaming service with Redbox

Feb 06, 2012 By PETER SVENSSON , AP Technology Writer

Challenging Netflix, phone company Verizon Communications Inc. says it will start a video streaming service later this year in cooperation with Redbox and its DVD rental kiosks.

Verizon and Coinstar Inc., Redbox's parent, say the service will be national. It adds another leg to Verizon's quest to become a force in home entertainment, and looks set to compete to some extent with the cable-TV services it already sells.

Verizon has its own cable-TV service, called FiOS, in some areas. Its subsidiary has also signed a deal to sell service from . and other cable companies in its stores.

Cable companies like Comcast have shied away from offering video streaming services to people who don't subscribe to their regular cable services, which have much higher monthly fees than those charged by .

Verizon and Coinstar didn't reveal prices or other details of their service. It's intended to give customers access to DVD and Blu-ray discs as well as streaming movies, they said.

New York-based Inc. will own 65 percent of the unnamed venture, with Bellevue, Wash.,-based Coinstar Inc. owning the rest.

Netflix shares fell $3.07, or 2.4 percent, to $123.36 in premarket trading. Coinstar shares rose $3.29, or 6.6 percent, to $52.94. Verizon shares rose 2 cents to $37.86.

Explore further: Scientists twist radio beams to send data: Transmissions reach speeds of 32 gigibits per second

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Cox agrees to sell wireless spectrum to Verizon

Dec 16, 2011

(AP) -- Cable company Cox Communications on Friday said that it has agreed to sell some of its airwave licenses to Verizon Wireless for $315 million and will resell Verizon service in its stores.

Coinstar's 3Q earnings soar, Redbox prices to rise

Oct 27, 2011

(AP) -- Redbox's DVD rental kiosks are attracting movie lovers fed up with Netflix's video subscription service. But now Redbox's owner, Coinstar Inc., is risking its own customer backlash by raising its prices, the same ...

Comcast to sell advertising for Verizon FiOS TV

Jun 24, 2009

(AP) -- Setting aside their rivalry in the interests of business, Comcast Corp. said Wednesday it will sell advertising for Verizon Communications Inc.'s FiOS television service in 10 markets where they both compete.

Verizon 1st-qtr profit, revenue beat expectations

Apr 27, 2009

(AP) -- Verizon Communications Inc. said Monday its earnings grew 5 percent in the first quarter, boosted by its acquisition of Alltel Corp. and strong demand for its wireless, Internet and TV services.

Verizon pays $3.6 bn to buy spectrum from cable firms

Dec 04, 2011

US cellphone giant Verizon Wireless said Friday it will pay $3.6 billion to buy wireless spectrum from three leading cable providers which are bowing out of plans to plunge into the cellphone business.

Recommended for you

Cutting congestion on the data network highway

Sep 12, 2014

Perhaps no other consumer-driven technology has made such incredible advances in such a relatively short space of time as the mobile phone. Today's smartphones are used to stream videos, access social media ...

T-Mobile to sell phones that call, text on Wi-Fi (Update)

Sep 10, 2014

T-Mobile will sell more than 100 smartphone models with a built-in feature that taps into Wi-Fi networks to make phone calls and send texts when customers can't connect to the wireless carrier's cellular network.

User comments : 0