Shares of Coinstar soar on news that its RedBox DVD business will ally with Verizon

Shares of Coinstar gained more than seven percent today after news emerged that the Bellevue company’s Redbox DVD movie rental business would enter into a streaming video partnership with Verizon Communications.

TechCrunch first reported on the alliance, saying that RedBox and Verizon are targeting a May launch of next year.

The service couldn’t come soon enough for RedBox, since its primary rival, Netflix, has encountered a number of setbacks in recent months.

Redbox operates about 34,000 kiosks across the country, and the unit earlier this year passed $1 billion in revenue for the first three quarters of the year.

A video streaming service has been rumored for some time at RedBox, with TechCrunch saying that the new service will cost $5.95 per month to rent a certain number of shows or movies. Several pricing tiers are being planned.