updated 07:29 pm EDT, Fri September 28, 2012
Verizon to hold majority stake, service in testing
Verizon and Redbox appear to be nearing the release of their long-rumored streaming video collaboration, with the service said to be set to debut by the end of this year. Bloomberg reports that a Verizon executive revealed that the service is currently in testing and will focus solely on newer movies. The service will take subscription streaming like that seen with Netflix and combine that with movie sales, movie rentals, and DVDs from local Redbox kiosks.
The new service, Redbox Instant by Verizon, will be 65 percent owned by Verizon. Customers will have the option to download titles to mobile devices, game consoles, and set-top boxes through an assortment of programs, including iOS and Android apps.
Customers will also have access to Redbox's existing kiosks, of which there are almost 40,000 nationwide. Subscribers will be able to rent an allotment of DVDs from those physical kiosks.
The service is currently in testing in the homes of about 500 Verizon employees. Pricing is as yet unknown, as is a release date for the service. The companies reportedly want to roll out the service some time between late November and mid-December, but its general release date is set for "before year-end."