Verizon and Redbox have teamed up to offer consumers a Netflix alternative. The new service will offer a combination of physical rentals from Redbox and online streaming of movies.
The streaming movies will be available via mobile devices in the second half of the year.
Redbox also announced it will buy-out their main kiosk rental competitor, NCR Corp, giving them a corner on the kiosk rental market.
The new service is estimated to start at around $6 per month, making it a cheaper alternative to Netflix customers who choose both streaming and mailing services. Neftlix streaming-only currently runs $7.99 per month, while the combined package of streaming and mailed DVD delivery is currently listed for $15.98 per month.
The question does remain: Will the new Verizon/ Red Box service be a viable Netflix competitor, considering no solid annoucements have been made as far as what its content library will offer.
Netflix currently shells out about $1 billion per year to maintain and add to their content library.
However, Verizon does already have a content partner in place with FiOS TV. But again, no annoucements have been made as to what might be made available.
"What our consumers would like is access to a much broader array of options," said Coinstar (opertor of Redbox) CEO Paul David to Reuters. "We're focused on new releases. ... Once it's in the box a few months we pull it out."CEO
Either way, consumers may welcome the competition to keep prices down among competitors.