More competition on the horizon for the already struggling Netflix.

Our source says that Verizon is in fact planning a major partnership with RedBox, whose fast-growing business of $1 (now $1.20) DVD-rental kiosks has made it a major player in the content distribution game. They aim to debut a TV and movie streaming and download service this coming May.

The service is called Project Zoetrope internally, and will be a subscription, streaming, and downloading service for TV and movies that will be available on a broad variety of platforms: they plan support for iOS, Android, Google TV, Xbox, Roku and other streaming boxes, and browsers. “Set-top boxes,” by which they mean more traditional digital cable boxes, are not supported; this is an internet service, not a broadcast service.

So it’s pretty much going to be another Netflix clone the way I see it. When it comes to streaming video services, the only things that will determine who comes out on top in the end is basically who can get it to look the best, who can market it the best, and who can offer the lowest subscription plans. That, and a decent navigational menu, in which Netflix has seemed to be getting worse and worse somehow. Maybe it’s just me.

This isn’t the first streaming movie service that has surfaced lately to try to oust Netflix as the top dog. Hulu Plus, Amazon Prime, Veoh, Yahoo Sreen, Crackle and Vudo just to name a few – all scrambling to dominate the streaming industry, or at least get a piece of the pie while they still can.