Verizon to set up streaming service with Redbox

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NEW YORK (AP) -- Challenging Netflix, Verizon says it will start a video streaming service later this year in cooperation with Redbox and its DVD rental kiosks.

Verizon and Coinstar Inc., Redbox's parent, say the service will be national, apparently setting it up to compete with Verizon's own cable-like FiOS service in some areas.

The partners didn't reveal prices or other details of the service. It's intended to give customers access to DVD and Blu-ray discs as well as streaming movies, they said.

New York-based Verizon Communications Inc. will own 65 percent of the unnamed venture, with Bellevue, Wash.,-based Coinstar Inc. owning the rest.