Verizon and Redbox have announced a joint venture to directly challenge Netflix and other streaming/rental services, combining Verizon’s power in the cable and internet business with Redbox’s massive installed base. A 65/35 split in Verizon’s favor, the service would provide instant view over Verizon’s network, as well as access to physical discs at Redbox kiosks.
With this kind of muscle behind them, it’s starting to become clearer why Redbox felt safe telling WB to shove it last week. Verizon’s cable muscle is huge, and since it’s reasonable to assume they won’t have to worry about any bandwidth games like the alledged games that Comcast has played with Netflix, it’s pretty significant. Combine all this with Verizon’s new contactless payment system, and customers will get everything on one bill, and wave their phone to pop out a movie at the kiosk with instant billing (just in time for the iPhone 5, which is rumored to support the feature).
While it’s unclear what kind of content deals are already in place, Verizon’s supposed attempt to purchase Netflix last year says that they’re probably throwing them together right now in order to make the promised fall debut. Combine that with Verizon’s desire to put their cable box app in as many CE devices as possible, and you have a freight train coming down the road that’s worth watching.
Via: [Hollywood Reporter]