Slate.com reports that Coinstar - which owns Redbox - is working with Verizon to challenge Netflix. The two companies will “ offer a streaming service to customers nationwide before the year is over. The new venture will supplement the streaming and download service with hard-copy access to DVDs and Blu-ray discs at the familiar Redbox kiosks found at gas stations, grocery stores, and elsewhere.”
Pricing and offerings specifics have not been announced.
Pricing and offerings specifics have not been announced.
- KC's View:
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This seems smart because it allows Redbox to expand into the streaming business, and Verizon to expand beyond its Fios TV business. And it takes advantage of the fact that Netflix may have a little weakness at the moment because of the way in which it irritated so many subscribers with a price increase and an aborted attempt to separate its streaming and DVD rental businesses.
Big lesson: There’s no such thing as an unassailable business model.
