Verizon and Coinstar Inc., parent company to Redbox, made the announcement Monday, saying the service will be nationwide and will even be available to non-Verizon customers. Verizon's move comes in an effort to establish itself as a home entertainment force. The phone company already offers FiOS, its own cable-TV service.
"We've made a conscious decision to innovate and get involved with this market because it's legitimate and growing, and we think the partnership with Redbox gives us huge upside," said Bob Mudge, president of Verizon's consumer business.
Subscriber prices were not revealed. Verizon's service is intended to give subscribers access to DVD and Blu-ray discs as well as online movie streams. If a movie isn't available for online streaming, the site will direct customers to nearby Redbox kiosks where the movie is available.
The Associated Press contributed to this report.