Verizon has teamed up with DVD rental service Redbox, and the two companies are working together to launch a new video on demand service to compete with Netflix and other video on demand services.
The new video on demand service will launch in the second half of 2012, and it will be a subscription-based service, which will be delivered by Verizon, and Redbox will continue to operate its DVD rental service.
“When you consider the core elements the parties bring to this venture – our powerful brands; our national rental kiosk footprint; our anytime, anywhere network presence; and our mutual commitment to customer-focused innovation – it’s clear that Verizon and Redbox are a powerful entertainment team,” said Bob Mudge, president of Verizon consumer and mass business markets.
Strategic Advantages of the Partnership
The collaboration between Verizon and Redbox leverages the strengths of both companies to create a formidable competitor in the video on demand market. Verizon brings its extensive network infrastructure and technological expertise, ensuring that the service will be reliable and widely accessible. On the other hand, Redbox contributes its well-established brand and extensive network of rental kiosks, which are already a familiar and trusted source of entertainment for many consumers.
This partnership aims to provide a seamless entertainment experience that combines the convenience of digital streaming with the option of physical DVD rentals. This hybrid model could appeal to a broader audience, including those who may not have reliable internet access for streaming or who prefer the quality of physical media.
Potential Impact on the Market
The entry of Verizon and Redbox into the video on demand market could significantly impact existing players like Netflix, Hulu, and Amazon Prime Video. By offering a competitive subscription-based service, Verizon and Redbox could attract a substantial number of subscribers, particularly those who are already using Redbox kiosks for their DVD rentals.
Moreover, the partnership could drive innovation in the industry, pushing other companies to enhance their services to maintain their market share. For instance, Netflix might need to invest more in original content or improve its streaming technology to stay ahead of the competition.
There are no details on how much the new video on demand service from Verizon and Redbox will cost, as soon as we get some more information we will let you guys know.
Source The Next Web
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