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Media

Coinstar Ventures With Verizon Against Netflix (CSTR, NFLX, VZ)

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By Jon C. Ogg Updated Published
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Coinstar, Inc. (NASDAQ: CSTR) is surging this morning on news that it will get to compete even more with Netflix, Inc. (NASDAQ: NFLX).  The operator of box DVD rentals has formed a joint venture with Verizon Communications, Inc. (NYSE: VZ) for streaming video.

The move will allow Coinstar to look a bit more like Netflix as far as a physical video rental and a streaming video model.  This supposedly comes with all of the convenience, simplicity and value of Redbox.

A subscription service will launch in the second half of 2012 and the brand and product information will be revealed in the coming months.

The offerings will be instantly available online and mobile content with immediate access to physical media through rental kiosks.  The joint venture is a limited liability company with Verizon holding a 65 percent ownership share and Redbox holding a 35 percent ownership share at the outset.

Coinstar shares are up 6.5% at $53.00 against a 52-week range of $37.43 to $60.71; Netflix is down 3.4% at $122.10 against a 52-week range of $74.25 to $304.79.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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