TMCnet Feature

Coinstar, which operates the Redbox DVD rental service, is partnering with Verizon (News - Alert) Communications to launch an online streaming video entertainment service.

The move is not unexpected and might not be the last product Coinstar and Verizon decide to offer. Verizon holds a 65 percent stake in the venture, which will launch later in 2012. Coinstar,Verizon partner for streaming video

The joint venture also will have to start investing in a greater selection of content if it wants to compete successfully with Netflix.

Among other aspects of the move that are significant, the video streaming service will represent yet another move by Verizon to offer services other than its mobile services on a nationwide basis. Verizon actually offers fixed network services to consumers representing less than 20 percent of U.S. households, so future growth will hinge, in part, on creating new services that can be purchased by nearly all U.S. households.

The recent agency agreements Verizon has struck with Comcast, Time Warner (News - Alert) Cable, Cox Communications and Bright House Networks likewise represents a move to get "out of territory."

For Verizon, most of the United States is “out of market” in terms of fixed network services. Dish Network has chosen an alternate approach. Its Blockbuster Video streaming service is sold only to Dish Network customers.