Rival to Netflix to launch next year
The debut had been expected late this year, but that projection seemed increasingly ambitious as the partners move into December still testing.
News comes the day after Netflix stock slumped 7% after a report on tech website GigaOM called the upcoming Redbox Instant by Verizon a major threat to the dominant player because it will cost less and the aggressive rollout of Redbox kiosks will allow it to offer combined subscriptions even as Netflix tries to wean its users off DVD by mail.
Also this week, Mexican billionaire and media mogul Carlos Slim’s American Movil announced plans to start up a similar streaming service in Mexico called Clarovideo. It’s already present in other Latin American countries, signaling the competitive pressure Netflix faces as it expands overseas.