Verizon will be the majority owner of the joint venture digital delivery service that is expected to be launched in the second half of 2012. It will become the first telecom or cable company to stream video to customers who have not become its subscribers already. Verizon, which until now had pursued customers only in the markets where television and Internet services are delivered by it, will now be able to seek a national audience.

 

Redbox will now prove to be a more formidable competitor to Netflix due to the strong streaming Internet option that will give its popular kiosk rental a big boost. Verizon and Redbox have not yet decided a name for their joint venture nor have they decided on the pricing details. However, there are indications that a single subscription rate will be applicable to both kiosk rentals and streaming services. The kiosk rental of $1.20 per night is likely to remain unchanged.