Verizon Looks at Redbox to Broaden Content Distribution

The second biggest player in the wireless space, Verizon Communications(NYSE: VZ) has been holding meetings with Redbox, the DVD-rental arm of Coinstar (NASDAQ: CSTR).  IT looks to be part of a wider strategy to grab a part o the streaming online video market currently dominatied by Netflix (NASDAQ: NFLX) and Hulu.

Verizon has a catalog of streaming content for their FiOS customers, a large installed base of fiber in the ground and a huge share of the wireless market.  What they lack is the expertise in working with providers of content.  Redbox has that.  The company had previously looked at Hulu, but is no longer interested in them.

They also lack a brand that is associated with such technology, unless you count the NHL, which I don’t.

IPTV is the current wave companies are scrambling to get a piece of. Apple (NASDAQ: AAPL) and Google (NASDAQ:GOOG) have their services which are tied directly into their mobile devices.  Amazon (NASDAQ:AMZN) offers streaming to ‘Prime’ subscribers.  This is putting serious pressure on cable and satellite companies.  If Verizon can put the whole package together over their FiOS network that would be a boon to them, depending on implementation.

Verizon is serious about an online streaming business marketed to those outside of their FiOS coverage.  Reuters reported that this service would be narrow in scope.  Partnering with Redbox could change that focus.

Previous Post »  
Tags: , , , , , , , , , , , , , , , ,
Tom Luongo

About Tom Luongo

Tom Luongo is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

Comments are closed.