Verizon Communications Inc. (VZ)’s talks to combine with movie-rental kiosk operator Redbox for an online-video service could lead to the phone company gaining expertise needed to start a business rivaling Netflix Inc. (NFLX)
Verizon, the second-largest U.S. phone company, has been meeting with Redbox, a unit of Coinstar Inc. (CSTR), in an effort to work out a content-distribution plan, according to a person familiar with the talks. The carrier has also met with other potential video partners and final details for any arrangement haven’t been determined, said the person, who declined to be identified because the talks aren’t public.
Phone companies and pay-TV providers are seeking ways to enter the online-video market dominated by Netflix and Hulu LLC as consumers increasingly watch movies and TV shows over the Internet. A combination with Redbox, known for its DVD-rental vending machines, would provide New York-based Verizon with knowledge about working with content providers and a brand consumers associate with movie distribution.
Full story: Verizon Could Gain ‘Missing Piece’ With Redbox – Bloomberg.