Movie rental operation Redbox is working on a subscription streaming service to help it compete with Netflix and Hulu, Bloomberg News reports.

The online service would be combined in some way with physical DVD rentals, the story says. Redbox, owned by Coinstar, said last year it was developing an Internet strategy, although it didn’t specify its business model.

Coinstar expects to start streaming this year, the story notes, citing Chief Executive Officer Paul Davis. He also said the company has been talking with "a lot of players in the space" about a digital partnership, although nothing is set.