Redbox instant streaming plan takes on Netflix

LOS ANGELES - DVD kiosk operator Redbox is launching a challenge to Netflix's streaming-video supremacy.

Later this month, Redbox will offer own unlimited streaming-video plan that includes four nights of physical DVD rentals for $8 a month.

That's even lower than the $10 a month DVD and streaming plan that Netflix abandoned a year ago in an unpopular price hike that caused customers to defect.

Redbox kiosks offer the latest DVDs from the major studios, while its streaming plan will feature movies from Warner Bros. and Epix, the pay TV channel owned by Paramount Pictures, MGM and Lionsgate.

The service, called Redbox Instant by Verizon, could have limited appeal for forgetful folks. DVD renters who neglect to return discs will start having to pay $1.20 a night after the four nights per month.