Today in TechLook out, Netflix: Redbox teaming up with Verizon to stream movies
It's been a rough 12 months for movie rental giant Netflix. The company sharply increased rates from $8 to $15, irking customers, and announced plans to split into two confusing new entities, renaming its traditional DVD-by-mail service Qwikster. Netflix ultimately abandoned its Qwikster plans, but not before looking like a rudderless, confused organization without a PR strategy. Now, Netflix faces a new threat: Rival company Redbox is partnering with Verizon to compete with Netflix's movie streaming service.
Plans to launch a Netflix rival have been in the works by Verizon since at least December 2011. Today's announcement cements those plans, and provides more details. Verizon will hold the largest stake in the company (65%), with Redbox parent company Coinstar owning the balance. No details have been announced regarding the cost of the service, nor how the service might be bundled with existing Redbox locations or Verizon's Video on Demand services.
One key advantage the new jointly-owned company may have moving forward is that it will be able to deliver content to all devices — TVs, computers, tablets, and phones. Current Netflix and Hulu customers often struggle with DRM issues, with certain content not being viewable on mobile devices.
This article was written by Fox Van Allen and originally appeared on Tecca
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