On Monday, Verizon and Coinstar, which is Redbox‘s parent company, announced a partnership that will bring a service very similar to Netflix‘s to consumers. The companies will offer both a physical and streaming video platform that will be available online and on mobile devices.
While the news adds another player to the space for consumers to choose from, most people are talking about the impact of the unnamed Verizon/Redbox venture on Netflix. As we all know, Netflix had its share of problems last year when it hiked its prices. Many users even said they were discontinuing their service as a result.
However, Bryan Gonzalez, the Director of Social Entertainment Labs at the Entertainment Technology Center at USC, told that, if Netflix keeps its focus on content, it would remain a competitor in the space. According to him, Redbox and Verizon’s venture will be a contender but will not likely kill Netflix.
Coinstar and Verizon said their service would be available at the second half of this year. Is this a service you’ll use?