Rumors of a merger or partnership between Coinstar – which owns the Redbox line of DVD/Blu-ray rental vending machines – and Verizon have had some light shed on them via a recent press release announcing that the two companies are joining to create a subscription service offering both physical and broadband streaming video content.
The joint venture, being called "Project Zoetrope," is designed to be a direct Netflix competitor by offering DVD and Blu-ray videos as wells streaming and downloadable content. Further details, such as pricing or packages that will be offered, are not yet known at this point, aside from the fact that the service is expected to be available for consumers in the second half of 2012.
It appears that the service will be available on non-Verizon devices and broadband providers. Verizon does claim in the press release that it plans to "erase all technological boundaries."