Today, Verizon and Coinstar, owner of popular disc rental service Redbox, announced a new partnership where the two companies will build a service that features Redbox technologies and be a direct competitor to Netflix. The service will feature DVD and Blu-Ray Disc rentals from Redbox and a "new content-rich video on-demand streaming and download service from Verizon."

The unnamed service will feature subscription services and be focused around giving consumers entertainment on several devices in different forms.

"When you consider the core elements the parties bring to this venture – our powerful brands; our national rental kiosk footprint; our anytime, anywhere network presence; and our mutual commitment to customer-focused innovation – it's clear that Verizon and Redbox are a powerful entertainment team," said Bob Mudge, president of Verizon consumer and mass business markets.

"Consumers rely on Redbox for the latest new release movies at a great value, and our joint venture with Verizon will enable us to bring them even more value by offering expanded content offerings and greater flexibility for how and when they enjoy entertainment," said Paul Davis, chief executive officer of Coinstar, Inc. "This alliance is the result of a deliberate and strategic process to identify a partner who shares our commitment to delivering innovative solutions to consumers. We look forward to rolling out the shared benefits this venture will bring to consumers, retailers, and shareholders."

The partnership will utilize Verizon's relationships with entertainment providers, cloud computing technologies, and IP network infrastructure.

Verizon will be owning 65% of the venture, while Coinstar will hold the remaining 35%. The two companies plan to fully reveal the service in the second half of 2012.