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.

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