Redbox Instant Sets Price at $8 Month

by Christopher Freeburn | December 12, 2012 1:10 pm

[1]A new video streaming service from DVD rental kiosk maker Redbox will be priced to compete directly[2] with Netflix (NASDAQ:NFLX[3]).

Redbox Instant by Verizon, a partnership between Verizon (NYSE:VZ[4]) and Redbox parent company Coinstar (NASDAQ:CSTR[5]) will beging beta-testing this month. The service will be priced at $8 a month, matching Netflix’s monthly streaming-only option, Forbes notes.

Shares of Coinstar surged more than 4% in Wednesday trading, while Verizon rose about 1%. Netflix shares soared about 7% despite the Redbox news.

The service will feature unlimited streaming of titles in the Redbox library. Redbox has acquired streaming rights to content from Viacom‘s (NASDAQ:VIAB[6]) Paramount Pictures, Comcast’s (NASDAQ:CMCSA[7]) NBCUniversal, Lionsgate (NYSE:LGF[8]), Sony Home Entertainment (NYSE:SNE[9]), Time Warner‘s (NYSE:TWX[10]) Warner Brothers and the EPIX TV channel.

Available through a web-based platform, the service will also issue apps for mobile devices running Apple‘s (NASDAQ:AAPL[11]) iOS and Google‘s (NASDAQ:GOOG[12]) Android operating systems.

Subscribers will also receive four kiosk DVD rental credits per month. For $1 more a month, Redbox Instant subscribers will be able to use those credits to rent Blu-Ray disks.

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