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13 Feb 2012

Redbox throws a haymaker to Netflix

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Redbox throws a haymaker to Netflix

Blog Date: 2/9/11
Author: Edwin Ayala,Business Management Major

            Phone company Verizon Communications Inc. is partnering with Redbox to throw blows at Netflix, with Verizon starting a video streaming service with Redbox and its DVD rental kiosks placed all throughout the United States. Verizon and Redbox’s parent company, Coinstar Inc., announced that the service will be national and available to non Verizon customers. The new service will combine Internet delivery of their movies, similar to Netflix’s system. Specific details and pricing of the new service have not been announced yet.

            According to a person briefed on the plan spoke out about the deal, both companies were looking toward a $6 per month offering that would give subscribers one DVD rental from Redbox per month, as well as an unlimited streaming on a certain selection of movies. It is not certain whether that plan has been altered, but sources say that it will most likely be less than the $16 a month minimum Netflix users have to pay for the same DVD and streaming service.

Do you think Verizon and Redbox can knockout Netflix? Leave your thoughts and opinions below. 

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