Verizon enters the online video streaming business

To launch this project, the telecommunications giant in the US, Verizon, has teamed up with Coinstars, a company that participates in the DVD rental business through Redbox.

The American telecommunications giant Verizon plans to launch a new online streaming service that would compete directly with Netflix, a VoD platform that has already exceeded 24.4 million users (1.86 million outside the US).

To launch this project, Verizon has partnered with Coinstars, a company that participates in the DVD rental business through Redbox. Verizon will have 65% of the shares in the new company, and Coinstar will have the rest.

In addition to the online streaming service, the company will provide access to a DVD and Blu-ray rental service, thus inheriting Coinstars' know-how in this matter. Customers will be able to access the content from any device, although the catalog with which this initiative will take off has not yet been made public.

Verizon mass market president Bob Mudge said the two companies will form a “powerful entertainment team,” while Coinstar CEO Paul Davis said the service will “expand the content and flexibility” to access it.