Redbox and Verizon to launch streaming video service this year

Coinstar-owned DVD rental kiosk company Redbox was one of the biggest reasons Blockbuster video went bankrupt. Monday, Coinstar announced it has begun a joint venture with communications service provider Verizon to build a subscription streaming video service.

It is a move nearly identical to the one Netflix took three-and-a-half years ago, when it branched out from being a DVD-by-mail service to also being a streaming video provider through a partnership with Starz.

The streaming content is expected to debut in the second half of 2012, available to both residental and wireless subscribers, and will offer "subscription services and more in an easy-to-use, flexible and affordable service that will allow all consumers across the U.S. to enjoy the new and popular entertainment they want, whenever they choose, using the media and devices they prefer."

The Redbox/Verizon joint venture does not yet have a name of its own, but majority ownership is Verizon's. The network operator will hold a 65 percent stake while Redbox will hold a 35 percent ownership stake.

We hear that "Qwikster" is still available!