Verizon deal could cannibalize Redbox DVDs: BTIG

CHICAGO (MarketWatch) -- The just-announced deal between Verizon Communications Inc. and Coinstar's Redbox could have negative consequences for Redbox, in the view of media analyst Richard Greenfield of BTIG Research. In his latest blog entry, Greenfield commented: "The problem with the Verizon/Redbox JV is that once you have a great streaming product, consumers are simply not going to want discs anymore." Consumers are increasingly becoming accustomed to streaming, Greenfield explained, thanks to Time Warner Inc.'s HBOGo service and Netflix Inc.'s very popular streaming offering, among others. "We have a hard time understanding how the Verizon service will be better than simply subscribing to both Netflix streaming and DVD offerings or subscribing to Netflix streaming and using Redbox kiosks for the occasional new release," the analyst wrote. Redbox operates thousands of kiosks across the U.S., offering DVDs for rent at $1. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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