Is This Verizon's Shot Across Netflix's Bow?

Verizon's partnership with Coinstar to launch Redbox instant streaming service has made a lot of headlines lately, and many people see it as a direct threat to Netflix's streaming empire.

While the rival service is clearly leveled at Netflix's price point, that doesn't mean it will be enough to knock Netflix from its perch. For one, Netflix has already secured a distribution network that will be tough to match. The company is also years ahead of the competition with regard to its streaming library, which has different economics from DVD rentals. This isn't to say that it isn't a value-add for Verizon or Coinstar, but probably not enough to legitimately threaten Netflix's empire.

The Fool's Austin Smith and Jeremy Phillips have more in the following video.

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The article Is This Verizon's Shot Across Netflix's Bow? originally appeared on Fool.com.

Austin Smith and Jeremy Phillips have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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