Netflix Falls 3% after Verizon/Redbox Joint Venture

Shares of Netflix

are seeing come weakness during Monday's pre-market session after Verizon

and Coinstar's

Redbox announced a joint venture agreement. The formation of a joint venture will create a new choice for quality- and value-conscious consumers to access video entertainment. The venture's services will offer all of the convenience and value of Redbox new release DVD and Blu-ray Disc rentals combined with a new content-rich video on-demand streaming and download service from Verizon. The joint venture plans to introduce the product portfolio in the second half of 2012. It will offer subscription services and more in an easy-to-use, flexible and affordable service that will allow all consumers across the U.S. to enjoy the new and popular entertainment they want, whenever they choose, using the media and devices they prefer. Additional brand and product information will be revealed in the coming months. CNBC personality,

that this is just another reminder that Netflix DOES have competition. Currently, shares of Netflix are trading lower by about 3% at $122.56.