Washington, D.C. (July 25, 2012) -- Verizon and Redbox are now testing their much-anticipated video rental service which will offer both disc rentals at Redbox kiosks and streaming via Verizon, reports FastCompany Magazine.

The publication said the testing is still being done among employees, but the companies are expected to launch the service later this year. And it even has a name now -- Redbox Instant by Verizon, although it's likely consumers will shorten that to Redbox Instant.

Verizon and Redbox have also launched a web site, RedboxInstant.com, where consumers can leave an e-mail address to receive updates on the service. The site's Home page says the new service will provide "DVDs at the Kiosk. Instant Streaming Hits. All In One Fist-Pumping Package."

At launch, the Verizon/Redbox service could emerge as a major competitor to Netflix which yesterday reported losing more than 300,000 subscribers in the second quarter. The combination of easy availability of discs from Redbox kiosks with streaming movies could attract consumers who want both equally. Netflix has been criticized by some analysts for downplaying its DVD business while trying to boost its streaming business.

However, Verizon and Redbox have yet to offer pricing details on the service and it remains to be seen if pricing will be competitive with Netflix.

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