Inside Redbox is the #1 "Unofficial" Redbox Online Community for Redbox Codes, News and more. Inside Redbox is not affiliated with Redbox Automated Retail, LLC.

Look out, Netflix. Redbox, which also announced the acquisition of rival Blockbuster Express today, has teamed up with Verizon to offer a video-on-demand service. The new service will be available nationwide later this year, and will feature a download option—something Netflix is lacking.

Here are the known details of the deal, courtesy of GigaOM:

  • Verizon will own 65 percent of the joint venture while Coinstar, Redbox’s parent company, will own 35 percent.

  • The service will offer something Netflix currently doesn’t — a download option, which makes it more competitive with Amazon’s video offerings.

  • The offering will be available nationwide, not merely to Verizon customers.

  • Using Redbox helps the joint venture get access to new releases as content companies are trying to add more “windows” to the movie release process. Windowing is what content companies use to spread out the time between a movie released in theaters, when it hits rentals stores and when it makes its way to other services such as premium TV channels. The general thinking is this increases profits for each movie, but opinion is divided on that, and consumers hate it.

  • Verizon is counting on its existing relationship as a pay TV provider to get more content to the joint venture.

  • Whatever the end product looks like, it will launch in the second half of this year.

  • This is a huge deal, and should make Netflix a bit nervous. It helps Redbox get access to new content and will also drive traffic to Verizon’s networks, including its ultra-high speed FiOS areas.

    Despite the lack of details, this new service seems pretty interesting. Is it something you would consider paying for, Insiders?

    (via GigaOM)

     

    5 Responses to “Verizon and Redbox Join Forces in VOD Service”

    1. Visitor [Join Now]
      justme [visitor]

      That would depend on the pricing of course.

    2. Member [Join Now]
      s142424

      I would need more details. Depends on the price and what movies are actually available.

    3. Visitor [Join Now]
      Marshall [visitor]

      It seems like it will work similar to the kiosks, like a premium channel in a way. Hit movies and some fluff that will rotate out when newer stuff comes in. I imagine the download service is similar to Amazon as in full of DRM and time restrictions. Probably not worth it in the days of high speed internet. Streaming is easier and better for most viewing needs.

      I don’t see this making Netflix nervous
      1- the media really needs to stop making things dramatic. This service isn’t direct competition because it’s VERY different. It reminds me of middle school where someone would say “oh snap” and try to start a fight about some trivial remark.
      2- people most likely will have both if they are interested in this since Netflix offers so much more
      3- Netflix is huge and for now bulletproof.

      edit–

      Would I pay for it? Yes most certainly. I like to try things out so I’d get a month service and see if I like it. Will I keep it? Probably not. New movies are mostly crap. People fuss about Netflix not getting new releases but how many new releases are really that great anyway? Maybe one a month.

    4. Visitor [Join Now]
      Darrell [visitor]

      If they are priced similar to Netflix and can offer more recent movies, yes…. Otherwise, forget it.