Verizon's (NYSE:VZ) partnership with Coinstar (NASDAQ:OUTR) 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 (NASDAQ:NFLX) 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.
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.
More from The Motley Fool
Why 2017 Was a Year to Forget for Verizon Communications Inc.
Falling revenue and declining subscribership early in the year knocked the telecom giant off balance.
Free TV on Your Mobile Phone? What's the Deal?
The battle for mobile supremacy is good for consumers, but may indicate telecom growth is finished.
3 Dividend Stocks That Cut Bigger Checks Than Verizon
Ford Motor Company, Cedar Fair, and Cheniere Energy Partners all have larger payouts than Verizon Communications, but that's not the only reason to consider these stocks for your portfolio.