Since the Netflix debaucle in 2011 when they announced, then later retracted, the splitting of the company's online and mailed DVD services, customers have lost their faith in sticking with one online movie service. Blockbuster has ramped up their offerings in order to sway some of those customers who have tired of Netflix, such as providing video games with their monthly service. And based on personal experience, it seems like those Redbox kiosks are always mobbed with people.
Redbox has already gained quite a loyal customer base, with kiosks conveniently located almost everywhere and a surprisingly large variety of movies.
This morning Verizon Communications announced that it will team up with Redbox to provide an online movie streaming and download service in the second half of 2012. According to the Wall Street Journal, the two companies provided little details on the collaboration, but Verizon will own a 65% stake in the service and Redbox will own 35%.
Verizon has been looking for a partner to help broaden its FIOS customer base, and at the same time, Redbox has been looking for a partner to help them launch an online streaming service. With more and more moviegoers opting to stay home as opposed to seeing a movie in theaters, a new service like this is going to be enticing to customers.
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