Verizon (NYSE: VZ) and Coinstar won't launch their Redbox Instant by Verizon joint venture until as late as the second quarter of 2013, Verizon CEO Lowell McAdam said Tuesday.
(Image source: CoinStar)
When Verizon and Coinstar announced the streaming video service in February, the companies said it would debut in the second half of 2012. McAdam told attendees at UBS Global Media and Communications Conference that the companies were pleased with progress they have made on Redbox Instant, but that they are still testing the product.
Verizon and Coinstar haven't detailed the content that will be offered through Redbox Instant, or how much it will cost. While the streaming video service is expected to focus on distributing movies, Verizon and Coinstar could eventually challenge cable operators and satellite TV providers by distributing live and on-demand TV programming to subscribers nationwide.
In February, Coinstar disclosed in a Securities and Exchange Commission filing that the joint venture will have the "primary purpose of developing, launching, marketing and operating nationwide 'over-the-top' video distribution services providing consumers with access to video programming content, including linear content, delivered via broadband networks to video-enabled viewing devices and offering rental of physical DVDs and Blu-ray Discs from DVD rental kiosks."
Verizon has assigned several executives that helped create its FiOS TV service to the Redbox team, including VP of consumer strategy and planning Shawn Strickland, director of product development and management Joe Ambeault and executive directors Jack Gallagher and Pete Castleton. In August, In Demand Networks and Frontier Communications (Nasdaq: FTR) veteran David Asch was named SVP of content and strategy.
Redbox backs UltraViolet in new Warner Bros. agreement
Redbox recruits In Demand and Frontier veteran David Asch for top programming job
Verizon shifts top FiOS execs to Redbox Instant team
Verizon could become virtual MSO through Redbox joint venture