It’s a long time cut throat competition between Verizon and Netflix, and each of them is trying hard to get more subscribers and increase their market share. This time, Verizon chose to join forces with Coinstar Inc, owner of Redbox video rental kiosks, in an obvious attempt to challenge Netflix’ position in the market.
Basically, Verizon and Coinstar Inc. want to release a new video service which will offer customers nationwide physical and digital options. The truth is that the new video service is somewhat similar to what Netflix offers to consumers: a choice between physical discs and streaming. But rather than getting their stuff through mail, like Netflix delivers, Verizon offers delivery for discs at Redbox kiosks.
According to the press release, Verizon and Coinstar Inc have “announced the formation of a joint venture that will create a new choice for quality and value conscious consumers seeking a simple and affordable way to access the video entertainment they crave”.
The innovation Verizon and Redbox bring, apart from delivery in the kiosks network, is said to combine “convenience, simplicity and value” as it delivers DVD and Blu-ray rentals, streaming and downloading.
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”.
Bob Mudge, president of Verizon consumer and mass business markets, added that the joint venture is “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”.
Using the companies’ words, “Verizon and Redbox will be uniquely positioned to deliver the best of both worlds – digital and physical – to consumers across the country”. The key to their success seems to be “offering instantly available online and mobile content with immediate access to physical media through rental kiosks”.
According to the press release, the full product rollout will be released in the second half of this year. It will offer “subscription services and more in an easy-to-use, flexible and affordable service…Additional brand and product information will be revealed in the coming months”.