Report: Redbox + Verizon = Netflix Killer?

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Rick Wilking / REUTERS

It’s the rumor to end all streaming service rumors, and the culmination of months of speculation: Not only is the identity of Verizon’s partner for its planned Netflix competitor revealed, but the partner turns out to be a company that people have been expecting to get into the streaming content business for quite some time–yep, none other than vending-machine-rental king Redbox.

TechCrunch reported yesterday that the two companies are planning to launch an online TV and movie service next May called Project Zoetrope, which will offer both streaming and downloadable content to subscribers available through iOS, Android, Google TV, Xbox, Roku and other outlets in addition to web browers. Content will be available in both HD and standard definition, the site reported.

(MORE: Redbox Is Raising Prices (by 20 Cents))

If TechCrunch’s anonymous source is correct, Zoetrope will have a soft beta launch as early as April, before opening wide on May 28, with monthly subscription costs expected to be around $6 for basic membership in a pay-more-for-more system that will allow for offer great rental variety the higher your subscription tier is.

Despite being unconfirmed by either company, shares of Coinstar, Redbox’s parent company, rose 8% yesterday in response to this news, while Netflix shares continued their current downward trend.

MORE: Mad About Netflix Prices? Here Are Some Alternative Services

Graeme McMillan is a reporter at TIME. Find him on Twitter at @Graemem or on Facebook at Facebook/Graeme.McMillan. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.