Verizon announced Monday that it is taking a crack at the video streaming business.
The company is joining forces with Coinstar, the parent company of popular DVD rental kiosk business Redbox -- a move that will take on rival video rental company Netflix.
Verizon, which didn't elaborate on prices or service details, plans to roll out streaming to customers nationwide later this year. It will give them access to DVD and Blu-ray discs in addition to streaming movies. Customers will be able to access the streaming content on devices such as smartphones, tablets, computers and TVs.
"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 new subscription service will be offered to anyone in the U.S., regardless of whether or not they have its existing FiOS TV service or Verizon-operated broadband. Redbox's rental kiosks will still be available for those who prefer picking up a DVD at the store.
Verizon will own 65% of venture, and Coinstar will own the rest.
The news comes as Netflix last week announced it had added 220,000 streaming subscribers in the fourth quarter and posted revenues of $876 million, beating Wall Street forecasts. The company ended the quarter with 24.4 million total subscribers, 21.6 million of whom subscribe to Neflix’s video streaming service. About 10.4 million subscribers continue to get streaming plus DVDs.
Netflix experienced a steep drop in stock price in 2011 after hiking prices for some users and launching a rebrand of its DVD-only service called Qwikster. Both announcements upset many of its customers and even caused some to cancel their services.