LATimes: 'Redbox and Verizon to create streaming movie service'

"Redbox is hooking up with Verizon Communications Inc. as part of a major step forward to compete with Netflix Inc. in both the digital and physical worlds. The company famous for its ubiquitous red DVD rentals kiosks announced Monday that it would form a joint venture with telecom giant Verizon to create an online movie subscription service.

The digital delivery service, expected to launch in the second half of 2012, will be majority owned by Verizon, which will become the first telecom or cable company to stream video to customers who are not already its subscribers. That marks a significant step: Until now, Verizon, like Time Warner, Comcast, AT&T and other telecom and cable providers, has gone after customers only in the markets where it delivers television and Internet services. Now Verizon will be seeking a national audience.

Though Redbox and Verizon have yet to announce pricing details for their unnamed service, they did say it would include both streaming and kiosk rentals for a single monthly subscription rate. Kiosk rentals are expected to stay at $1.20 per night. The companies are betting that the combined offering will provide the most complete package in a fractured media landscape where studios limit the availability of titles online, particularly new ones.

Netflix offers nearly 10,000 movies through its streaming service, according to the website InstantWatcher.com, but many are part of deals that are or will soon be non-exclusive. That means Verizon and Redbox could offer their subscribers many of the same films."

More at link:
http://www.latimes.com/entertainment/news/movies/la-fi-ct-verizon-redbox-20120207,0,4158694.story

Hmmm, we shall see....