Redbox kiosks owner Coinstar Inc
The companies are set to launch their Redbox Instant video streaming service more than ten months after they first inked a joint venture.
Coinstar (Bellevue, USA) shares were up 3 percent at $52.50 on the Nasdaq on Wednesday morning. While Netflix (Los Gatos, USA) shares were down marginally at $86.24.
The new service, 'Redbox Instant by Verizon' would launch as a public beta later this month, the companies said in a statement.
The service, which combines the Redbox DVD rental kiosk business with an Internet video offering from Verizon (New York, USA), will sell subscriptions starting at $8 per month for unlimited streaming combined with four one-night credits for DVDs.
Redbox Instant would also offer a $9 unlimited streaming option that would allow users to rent Blu-ray discs.
Netflix's pricing currently starts at $7.99 for either streaming only or a single DVD by mail. To get both the streaming and DVD rental package prices start at $15.98.
Coinstar and Verizon had formed their joint venture in February to sell video services in a market that is dominated by Netflix but also has a number of new entrants including Amazon.com Inc's
Redbox Instant subscribers would have access to content from Warner Brothers Home Entertainment
(Reporting by Himank Sharma in Bangalore; Editing by Supriya Kurane)