Redbox and Verizon Get Hitched: Are You Worried Now, Reed Hastings?

A TechCrunch report says that the two companies are building a Netflix killer

Are you sweating now, Reed Hastings?

At the UBS conference this week, the Netflix CEO shrugged off a report that Verizon is  dipping its toe into the streaming market. 

"The competitor we fear the most is HBO Go," Hastings said.

Forget paid television, because it sounds like a certain kiosk company is finally entering the online video fray. Verizon and Redbox are busy pooling their resources to build a digital rental site that rivals Netflix, according to TechCrunch. 

A Verizon spokesperson declined to speak about the specifics of any plan. 

Also read: Netflix's Reed Hastings on New Verizon Competition: 'We're Still More Worried About HBO'

"We've talked to a lot of different companies, but we don't have a definitive agreement, so there’s really nothing to announce," Alberto Canal, a Verizon spokesman, told TheWrap.

A spokesperson for Redbox did not immediately respond to requests for comment.

TechCrunch's report is filled with juicy nuggets: It states that the service will launch in May and will be credit based, with consumers paying a monthly fee for credits they can use to rent movies, games and television shows. The service will apparently stream content to smart phones, Google TV, Xbox and Roku.

Also read: Ted Sarandos: 'Negative Momentum' at Netflix Will Turn Around in December

The service has internally been dubbed a very Space Age sounding, "Project Zoetrope."

Of course, Redbox has been talking about going digital for the past few years, but with Verizon's backing it might finally make good on its threats. 

Wall Street certainly hopes it has found its intestinal fortitude. Shares of Redbox's parent company Coinstar Inc. jumped 11 percent after media reports of a possible Verizon hookup hit.