Verizon and Redbox parent company Coinstar announced a joint venture, which will results in a streaming service for the popular movie rental service. The new service is supposed to launch in the second half of the year under a subscription-based model.

Redbox’s offerings today, are of course kiosk-based. People can go up to a kiosk at a grocery store, a McDonald’s, a Walgreens or other place, swipe their card, give their email address and rent a DVD or game. Redbox has become very popular thanks to the convenience (customers can return discs to any kiosk) and low prices. The lack of a streaming offering, however, has kept Redbox from being a bigger threat to Netflix and Blockbuster. That may soon change.

The announcement says that the venture’s services will offer Redbox’s new release DVD and Blu-ray rentals combined with “a new content-rich video on-demand streaming and download service from Verizon”.

“Consumers rely on Redbox for the latest new release movies at a great value, and our joint venture with Verizon will enable us to bring them even more value by offering expanded content offerings and greater flexibility for how and when they enjoy entertainment,” said Coinstar CEO Paul Davis. “This alliance is the result of a deliberate and strategic process to identify a partner who shares our commitment to delivering innovative solutions to consumers. We look forward to rolling out the shared benefits this venture will bring to consumers, retailers, and shareholders.”

“When you consider the core elements the parties bring to this venture – our powerful brands; our national rental kiosk footprint; our anytime, anywhere network presence; and our mutual commitment to customer-focused innovation – it’s clear that Verizon and Redbox are a powerful entertainment team,” said Bob Mudge, president of Verizon consumer and mass business markets.

“The joint venture will combine the accessibility and value of Redbox with Verizon’s vision for a borderless lifestyle – where consumers easily accomplish what they want or need to do, on their terms, through the power of the network,” added Mudge. “Together, we are erasing old technology boundaries, freeing people to spontaneously enjoy the entertainment they want, whenever they choose, using the devices and media they prefer, at home or away.”

The companies say additional brand and product info will be revealed in the coming months.

Last week, news came out that Redbox will no longer have 28-day delays on Warner Bros. content. That’s one edge Redbox has over Netflix.