Verizon and RedBox team up to battle Netflix
By: David Goldman
Published: February 6, 2012 5:46 PM ET
Source: CNNMoney
On Monday, Verizon and the popular DVD rental box company, RedBox announced that they will be teaming up to attempt to take down Netflix. Their partnership is expected to start in the second half of the year but they did not offer many details. Of the information that they did give, they said that there would be subscriptions and available on televisions, smartphones, and other platforms. The subscriptions will only be available for Verizon customers. RedBox feels that Verizon is the perfect partner for this project. The project will be owned primarily by Verizon at 65% while Coinstar who runs RedBox will own 35%. I feel that by having Verizon and RedBox joining forces, it will create great competition for Netflix. I know that recently Netflix has risen their prices for a yearly subscription so maybe if the new Verizon-Redbox company will be cheaper and get Netflix to lower their price. Many people that have Netflix would love to see them become cheaper again. The only downfall that I can see from this new venture is that it is only available to Verizon customers. Not everyone has Verizon and it may be a good idea for other carriers to be included so there can be a broader crowd to have the appeal for. As a past user of Netflix, I know that it is a very good company and offers a very good selection of movies and television shows. In order to dethrone the company as the top video streaming company, its competitors need to come together. In the article, it said that after this announcement, Coinstar’s stock rose 1.8%. This can be a very good thing for people who have shares in the company and eventually it can probably help Verizon stocks go up also. Many people buy stock based on if the company is popular and this will bring in more money for them. Therefore, the economy may become a little bit better based off of the idea. Within the next year, I predict that the company will become popular but it will more than likely never be as successful as Netflix because Netflix has been around longer and has a very good reputation.
http://money.cnn.com/2012/02/06/technology/verizon_redbox/index.htm
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