Verizon and Coinstar Inc. are taking on Netflix by offering consumers both digital and physical movies and TV shows. The joint venture is a limited liability company with Verizon holding a 65 percent ownership share and Coinstar’s Redbox holding the rest.
Both companies said the venture unites their respective strengths to meet consumer demand for control over when, how and where they access entertainment. Verizon brings the entertainment industry relationships and Internet network infrastructure, while Redbox brings a growing number of kiosks located where consumers already are.
The digital side will be by subscription. Information about the service’s name, pricing, consumer proposition and other specifics are being kept under wraps for now.
“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, through the power of the network,” said Bob Mudge, president of Verizon consumer and mass business markets. “Together, we are 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.”
Paul Davis, chief executive officer of Coinstar Inc., said, “This alliance is the result of a deliberate and strategic process to identify a partner who shares our commitment to delivering innovative solutions to consumers. We look forward to rolling out the shared benefits this venture will bring to consumers, retailers, and shareholders.”
Press release – http://tinyurl.com/7yu79d9
Photo by Flickr user beelerspace/John Beeler, used under Creative Commons license