The instant streaming market is about to get more competitive.
Coinstar (NASDAQ:CSTR), which owns the video rental service Redbox, has teamed with Verizon (NYSE:VZ) in the creation of Redbox Instant. The new service, designed to provide streaming access to movies and television shows, places Coinstar and Verizon in direct competition with Netflix (NASDAQ:NFLX) and Amazon (NASDAQ:AMZN).
Verizon VP Eric Bruno, quoted in Bloomberg Businessweek, said the new service will be available before the upcoming holiday season. The system currently is in the testing stages, is intended to work in cooperation with Redbox’s existing kiosk business and will focus solely on newer movies.
Users of Redbox Instant will be offered a choice of a subscription service or a cafeteria-style plan where users can pick individual movies to watch and pay for. The subscription plan will also include an unknown number of Redbox kiosk rentals per month.