Verizon, Redbox video JV
Online entertainment service Netflix is to face nationwide competition in the OTT and physical and digital markets with the news that US telco Verizon and retail solutions specialist Coinstar are forming a joint venture designed to create a new choice for quality- and value-conscious consumers seeking a simple and affordable way to access the video entertainment they crave.
The venture’s services will include Coinstar subsidiary Redbox’s new release DVD and Blu-ray Disc rentals combined with a new content-rich video on-demand streaming and download service from Verizon. The joint venture plans to introduce the product portfolio in the second half of 2012. It will offer subscription services and more in an easy-to-use, flexible and affordable service that will allow all consumers across the US to enjoy the new and popular entertainment they want, whenever they choose, using the media and devices they prefer. Additional brand and product information will be revealed in the coming months.
“When you consider the core elements the parties bring to this venture – our powerful brands; our national rental kiosk footprint; our anytime, anywhere network presence; and our mutual commitment to customer-focused innovation – it’s clear that Verizon and Redbox are a powerful entertainment team,” asserted Bob Mudge, president of Verizon consumer and mass business markets.
“Consumers rely on Redbox for the latest new release movies at a great value, and our joint venture with Verizon will enable us to bring them even more value by offering expanded content offerings and greater flexibility for how and when they enjoy entertainment,” said Paul Davis, chief executive officer of Coinstar.
He said the alliance was the result of a deliberate and strategic process to identify a partner who shared Coinstar’s commitment to delivering innovative solutions to consumers. The pair say the venture will create the kind of national multi-platform product that customers are demanding from video entertainment service providers. It will leverage Verizon’s industry-wide relationships with entertainment content providers, its advanced cloud computing technologies and state-of-the-art IP network infrastructure to distribute video on-demand content to its customers.
“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 Mudge. “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.”
By offering instantly available online and mobile content with immediate access to physical media through rental kiosks, Verizon and Redbox claim they are uniquely positioned to deliver the best of both worlds – digital and physical – to consumers across the country.
The joint venture is a limited liability company with Verizon holding a 65 per cent ownership share and Redbox holding a 35 per cent ownership share at the outset.