It was rumored that Verizon might buy Netflix out to gain a larger foothold in the streaming video service, but alas, the company's settled on a partnership with Costco's Redbox to create a new "compelling" entertainment on demand service.
The Verizon-Redbox joint venture would provide Verizon customers with Redbox's 35,400 kiosks across the country that serve out DVDs, Blu-rays and video games and give existing Redbox customers access to Verizon's streaming video services.
It's a win-win for the millions of Verizon and Redbox customers, as they'll only have to pay one monthly subscription fee to get access to physical discs or streaming content.
The focus will be to deliver new movies to kiosks first and push older content to the streaming route.
When asked whether or not the new venture would also include exclusive content, executives stated that the company might compete for them.
Details are forthcoming, but right now, the deal looks like a one-two combo punch that could be irresistible to sign up for. Provided the service will be competitive or lower than what Amazon, Netflix and Hulu are offering, Verizon and Redbox might be on to something really disruptive.
At a time when physical disc sales are said to be on the decline and streaming on the rise, Verizon's putting some serious cash into DVDs and Blu-rays. It's reassuring to know that my DVD player won't be out on the curb anytime soon.