Redbox, Verizon target holidays for OTT video launch
Michelle Clancy | 26-09-2012
Redbox and Verizon Communications are targeting a holiday launch for their over-the-top (OTT) online video service, dubbed Redbox Instant.
The service will combine a subscription streaming service with an allocation of physical DVD rentals from Redbox's distinctive red kiosks. Consumers can also buy transactional streaming rentals and downloads.
"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," said Bob Mudge, president of Verizon consumer and mass business markets.
Verizon owns 65% of the joint venture, and the service for now is in trials with 500 Verizon employees. Initial public trials should wrap up by mid-December and the service should launch commercially by the end of the year.
Eric Bruno, Verizon's vice president of strategy and planning for consumer and mass business markets, told Bloomberg that it will be a network "that can stand on its own against Netflix, against Amazon."
Pricing details and how the service will be marketed--in-market with Verizon's flagship FiOS TV or not--have yet to be announced.