Redbox to Team With Verizon on Internet-Streaming Business
Reports of a new subscription service that would compete with the likes of Netflix and Hulu caused Coinstar stock to jump 8 percent.
Shares of Coinstar rose 8 percent Thursday after reports that the company's Redbox DVD-kiosk company will team with Verizon to launch an Internet business to compete with the likes of Netflix, Amazon.com, Hulu, Apple's iTunes and others.
According to technology Web site TechCrunch, Redbox and Verizon plan to launch their TV and movies product by the middle of next year, and it will include content for streaming and downloading.
The product, dubbed Project Zoetrope internally, will sell various subscription tiers beginning at about $6 per month. Some tiers would include DVD rentals at Redbox kiosks.
Shares of Coinstar jumped $4.35 on the report to $47.45. Netflix shares fell 4 percent Thursday to $69.42.