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Verizon, Coinstar Tag Team on Netflix Rival

In what could become a serious new competitor to Netflix, Verizon Communications and Coinstar announced the formation of a joint venture will combine Redbox's new release DVD rentals with a new video-on-demand streaming and download service from the telco.

Verizon owns 65% of the JV with Redbox holding a 35% ownership share at the outset. The companies did not disclose how much they are investing in the venture.

The joint venture – as yet, there's no announced name for it – plans to launch its initial products in the second half of 2012. The Verizon-Redbox service will offer subscription services that will "leverage Verizon's industry-wide relationships with entertainment content providers, its advanced cloud computing technologies and state-of-the-art IP network infrastructure to distribute video on-demand content to its customers."

Verizon and Coinstar said they will announce additional brand and product information in the next few months.

Click here to read the full story on Multichannel News.