Redbox Goes After Netflix

Move over Netflix, there is competition coming to town.

This week Verizon and Coinstar's Redbox announced that they have joined forces to bring streaming video to U.S. consumers on whatever type of devices that they choose to use.

According to Reuters the Verizon-Redbox subscriptions will blast Netflix prices to pieces, with subscriptions starting at $6 a month for streaming movies and one DVD at time rental from the Redbox kiosks. Netflix charges $15.98 for the same rental subscription since splitting their streaming video and mail DVD plans, now $7.99 each per month.

Whether or not the speculative Verizon-Redbox pricing structure will become reality is still not known since both companies refrained from publicly talking price.

Will This Venture Ruin Netflix?

According to industry analysts the success of the Verizon-Redbox venture will depend on how large of an inventory of movies and other content will be available. Currently Netflix spends around $1 billion a year on building their content library. However, the head of Verizon's FiOS TV service said he is confident that they'll have enough content to compete.

See also: Redbox Plan Netflix Challenge