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Microsoft’s Xbox group and Redbox parent Coinstar are just down the road from one another, so maybe this shouldn’t be a surprise.

The new Redbox Instant by Verizon streaming service will be available “in the very near future” on Microsoft’s Xbox Live, according to a post today by Larry Hryb, better known as Xbox Live’s Major Nelson. Xbox 360 will be the only living room console to offer the service for now, according to the post.

Redbox Instant is currently available in beta. Redbox and Verizon are aiming to compete with the likes of Netflix and Amazon with a subscription service that blends online streaming with physical DVD rentals from Redbox kiosks. For $8/month, customers will get unlimited streaming, plus four one-night credits per month for DVDs. For $9/month, it’s Blu-ray rentals rather than standard DVDs.

Redbox Instant is also available on a PCs, tablets and mobile devices, including iOS, Android, Google TV, and smart TVs. A Redbox Instant spokesperson says Xbox will be the only console carrying the service during the beta and at launch, but they hope to be on additional consoles in the future.

Microsoft says the Redbox Instant app on Xbox Live will also let users buy and rent moves without a Redbox Instant subscription. Using the Redbox service on Xbox Live will also require an Xbox Live Gold membership, which costs $60/year. The app joins video services including Netflix and Amazon Instant Video on the Microsoft console.

(Thanks to Isaac Alexander for the link.)

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