6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

CNET News Video: Netflix gets competition with Verizon-Redbox deal

About Video Transcript

CNET News Video: Netflix gets competition with Verizon-Redbox deal

1:34 /

Watch out, Netflix. A new competitor will soon be entering the movie-streaming business. Verizon has announced it will team up with Coinstar, the parent of DVD rental company Redbox. CNET's Kara Tsuboi reports on the details of the partnership and why Netflix needs to worry.

Redbox has the movie titles. Verizon has the technology and infrastructure. Add them together, and you've got what could be a powerful provider for streaming on-demand entertainment. It's allowing Verizon to get in on a streaming game and actually count your Netflix head on. Separating this new subscription plan from the well established DVD rental service, is the ability to download movies and TV shows, so you can watch them later, in addition to just streaming them, a service that Netflix doesn't offer. Netflix has had all those backlash recently when it split the DVD business from the streaming business and started basically charging double to people who want it both. Like Netflix, the service will be available in two forms, as a traditional DVD rental from Redbox kiosks like these, through a streaming service on a wide variety of devices; televisions, smart phones and tablets. Under this deal, Verizon will own 65% of the joint venture, Redbox 35%. But other subscriptions and pricing details are vague, but CNET's Jessica Dolcourt says that it will all come down to the content the services can provide. If you wanna see your favorite TV shows, you wanna see your favorite movies and if Netflix can provide it, you might go over to Netflix. If Verizon can provide it, you'll go with Verizon. I think it's great. I don't have to come over here and rent a movie, you know. Definitely, I'd probably use that service. They have new movies available, than on Netflix. It sounds cool. If that attracts more customers, then hey. The service is expected to launch in the second half of 2012. In San Francisco, I'm Kara Tsuboi, CNET.com for CBS News.

New releases

An exclusive live chat with Google Lunar XPrize teams!
55:24 January 26, 2015
The Milestone phase of the $30 million Google Lunar XPrize is coming to a close, so we're gathering representatives from the five prize-winning...
Play video
Tomorrow Daily 118: Bill Nye's spacecraft, Mozilla's in-browser VR and more
26:20 January 26, 2015
On today's show, we check out Bill Nye and the Planetary Society's new privately funded spacecraft, discuss Mozilla's plans for VR,...
Play video
2015 Subaru Outback 3.6L Limited
6:00 January 26, 2015
Does the new Outback do enough to keep Subaru drivers coming back? Brian Cooley gets behind the wheel and checks the tech.
Play video
Icy adventure in the Land Rover Discovery Sport
1:10 January 26, 2015
Land Rover takes CNET editor Wayne Cunningham for a drive across Iceland, covering snow, ice and a river, in its new Discovery Sport...
Play video
iSmartAlarm's new camera sets out to secure the smart home
2:33 January 26, 2015
For $150, the iCamera Keep looks like a promising addition to one of our favorite security systems.
Play video
The thinnest tablet (so far) houses a stereoscopic camera
2:48 January 26, 2015
The Dell Venue 8 7000 is a skinny tablet with phat photography chops.
Play video
This tough garage fridge chills under extreme conditions
1:27 January 26, 2015
Designed to tame the harsh temperature swings of your garage, the Gladiator Chillerator works to keep its insides cool no matter w...
Play video
Sling TV launches with a new twist on Internet TV
2:54 January 26, 2015
Television service makes an evolutionary leap with Dish's $20 monthly plan, the NFL arrives on YouTube, and Freewheel offers Wi-Fi-only...
Play video