(Reuters) - Redbox kiosks owner Coinstar Inc <CSTR.O> and Verizon Communications Inc <VZ.N> said they will launch a video streaming service later this month to take on video rental giant Netflix Inc <NFLX.O>.
The companies are set to launch their Redbox Instant video streaming service more than ten months after they first inked a joint venture.
Coinstar shares were up 3 percent at $52.50 on the Nasdaq on Wednesday morning. While Netflix shares were down marginally at $86.24.
The new service, 'Redbox Instant by Verizon' would launch as a public beta later this month, the companies said in a statement.
The service, which combines the Redbox DVD rental kiosk business with an Internet video offering from Verizon, will sell subscriptions starting at $8 per month for unlimited streaming combined with four one-night credits for DVDs.
Redbox Instant would also offer a $9 unlimited streaming option that would allow users to rent Blu-ray discs.
Netflix's pricing currently starts at $7.99 for either streaming only or a single DVD by mail. To get both the streaming and DVD rental package prices start at $15.98.
Coinstar and Verizon had formed their joint venture in February to sell video services in a market that is dominated by Netflix but also has a number of new entrants including Amazon.com Inc's <AMZN.O> Prime, Hulu Plus and HBO Go.
Redbox Instant subscribers would have access to content from Warner Brothers Home Entertainment <TWX.N> and titles from Paramount Pictures <VIAB.O>, Lionsgate <LGF.N> and MGM, through a license deal with cable network Epix.
(Reporting by Himank Sharma in Bangalore; Editing by Supriya Kurane)