Redbox is teaming up with Verizon to launch a new streaming service that scheduled to begin in the second half of 2012.

Coinstar, the company that owns Redbox, and Verizon, were rather coy in describing exactly what the service will offer.  However, what they did say is that they will combine Redbox DVD and Blu-ray rentals with an on demand streaming service through Verizon. Redbox currently has over 28,000 kiosks across the US. Verizon has some 85 million cable subscribers. Sounds like a formidable team when it comes to delivering shows and movies.

Did we say Redbox has 28,000 kiosks? Scratch that. Redbox just announced they inked a deal with NCR to buy all their Blockbuster Express kiosks, dvds, and a variety of other entertainment related items. Just how many kiosks that is has not been made public – but it’s a substantial number. Looks like Redbox won the Redbox vs Blockbuster Express battle.

And with a deal that will take Redbox into streaming territory, the next battle may be between the Redbox/Verizon combo and Netflix. Netflix hinted about this threat just last month when they warned shareholders about increased competition from both cable companies and Amazon.

One thing is for certain. The battle over who will be top provider of streaming entertainment is just beginning. It might be quite a ride for consumers.