Verizon and Coinstar have announced the formation of a joint venture aimed, they say, at “offering instantly available online and mobile content with immediate access to physical media through rental kiosks”. The services will offer the Redbox rental model combined with video on-demand streaming and downloads from Verizon.
“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,” said Bob Mudge, president of Verizon consumer and mass business markets.
The companies plan to introduce the product portfolio in the second half of 2012, with additional brand and product information to be revealed in the coming months.
“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 Redbox parent company Coinstar, Inc. “We look forward to rolling out the shared benefits this venture will bring to consumers, retailers, and shareholders.”
The new venture will be provided by a limited liability company with Verizon holding a 65% ownership share and Redbox holding a 35% ownership share at the outset.
