Verizon to set up streaming service with Redbox

NEW YORK (AP) — Phone company Verizon Communications Inc. will challenge Netflix and start a video streaming service this year with Redbox and its DVD rental kiosks.

Verizon and Coinstar Inc., Redbox's parent company, said Monday that the service will be national and available to non-Verizon customers as well.

It adds another dimension to Verizon's quest to become a force in home entertainment, and it looks set to compete to some extent with the cable-TV services it already sells.

Unlike competing services from Amazon.com Inc. and Wal-Mart Stores Inc., the new service will combine Internet delivery of movies with DVDs, the way Netflix does. Dish Network Corp. also offers a similar bundle through its Blockbuster subsidiary.

Specific details and pricing of the new plan weren't announced.