When you think of it the Redbox Instant by Verizon product is genius. The child of a joint venture between Verizon and Coinstar's Redbox - the service plays off the strengths of both companies. Verizon handles most of the bandwidth traffic requirements (like a free CDN for Redbox) while Redbox handles the content rights which will pretty much be same movies you'll find on Amazon, Netflix or iTunes. Want a newer DVD release? You can try one of the Redbox kiosks - a wrinkle you won't find from any of the competing services.
Redbox enhances their existing offering with this service and Verizon adds traffic to their existing network. Win-win. The genius part is neither company is responsible for the last mile or wireless connectivity - the two areas where most of the customer issues will reside. Even if the customer is using Verizon DSL or Verizon Wireless - hey that's a different division!
Peter Kafka has a nice take on the new offering.
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