According to TechCrunch, the telecom giant is hooking up with RedBox to take on Netflix.
NEW YORK (TheStreet) - More details are leaking about the Verizon(:VZ) "Netflix-killer", as TechCrunch reported Thursday that RedBox, a division of Coinstar(:CSTR), is being brought in to work with the telecom giant on the service.
Reports first surfaced on Tuesday that Verizon was working on a service outside of its FiOS cable network area to take on Netflix(:NFLX) in online streaming. Verizon may be teaming up with RedBox to take on Netflix
According to the Reuters article, Verizon would be launching the service outside of the area where it currently has its FiOS network, which would give it access to an additional 85 million people.
RedBox currently offers DVD rentals starting at $1.20 per day in kiosks around the country. Coinstar has said in previous conference calls that it was looking to get into online streaming, but no concrete details have been given by the company as to who its partners would be.
Back in October, when Coinstar raised its prices on RedBox DVD rentals to $1.20 from $1, the company said it wanted to have a streaming plan in place by the end of 2011.
According to the TechCrunch article, the Verizon-RedBox service would offer streaming of movies and TV shows in both standard and high definition to a number of devices.
The launch is planned for May 28th, TechCrunch said, and pricing is thought to be both monthly and credit-based. There will be several tiers of subscriptions available.
Coinstar shares are sharply higher in midday action, up more than 5% in early Thursday trading, while Verizon shares are off 1%. Netflix shares are down around 2%.
--Written by Chris Ciaccia in New York
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