Red Box & Verizon Team Up In Attempt To Take Down Netfilx
“Telecommunications giant Verizon has announced it is teaming up with Coinstar’s Redbox DVD kiosk service to launch a new Internet-based streaming video service in the second half of the year. The move highlights the increasing importance of streaming video operations in the mainstream media marketplace, and at first glance a team-up between Verizon and Redbox would seem to have a lot going for it: both are widely recognized brands with strong customer bases, both are leaders in their industries, and they both have cash to sink into launching a major new service.
However, the online video industry is dominated by Netflix. Even though the company repeatedly alienated customers during 2011 it still accounts for more than half of the paid digital movie rental market, according to NPD’s VideoWatch Digital tracking service. And Netflix is not the only player in the field: Amazon Video on Demand is making inroads into the video marketplace (thanks to being rolled into Amazon Prime), and despite thinking it wants to sell out, Hulu has its adherents, particularly amongst TV fans. Can Verizon and Redbox hope to take on Netflix in a market it not only invented, but continues to easily dominate?”