Coinstar shares rise on Redbox-Verizon partnership report

Reuters News
Posted: Dec 08, 2011 4:28 PM
Coinstar shares rise on Redbox-Verizon partnership report

(Reuters) - Shares of Coinstar Inc jumped 11 percent after media reports that the kiosk maker's Redbox rental service is partnering with Verizon Communications for a new online streaming service.

Influential technology blog TechCrunch reported late on Wednesday that Verizon is planning a major partnership with RedBox and the two companies expect to launch a TV and movie streaming service by May next year.

Reuters had reported on Tuesday on Verizon plans to launch a standalone service allowing its customers to stream movies and television shows over the Web.

DA Davidson analyst John Kraft said the rumors were consistent with Redbox's long-term plan to enter the online streaming market.

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Redbox allows subscribers to rent movies and TV shows from its self-service kiosks.

Coinstar's shares were up 6 percent at $46.63 in afternoon trade on Nasdaq. They touched a high of $48.69 earlier in the day. (Reporting by Himank Sharma in Bangalore; Editing by Unnikrishnan Nair)