Redbox, the movie rental service, has announced a new joint venture with Verizon through which the companies will offer a streaming video service.

The new streaming video service will launch in the second half of 2012. Customers must subscribe to the service in order to stream video, but details about the price scale have not been released.

Coinstar, the company that owns Redbox, has positioned itself to compete with Netflix, Amazon, Hulu and other video streaming services with the venture.

Before the announcement, Redbox was primarily a rental service through vending machine-like kiosks at grocery stores and large retails stores such as Walmart. Redbox currently charges customers $1 per day to rent a DVD or Blu-Ray from 29,000 locations nationwide.

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 CEO of Coinstar Paul Davis in a statement.  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.

While Redbox kiosks will continue to operate, it's been made clear that the company will not begin mailing DVDs or Blu-Ray Discs through the mail as Netflix does. Verizon will own 65 percent of the new venture while Coinstar owns the other 35 percent. For more details about the joint venture, check the 8-K filing to the Securities and Exchange Commission (SEC).