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Redbox Supersizes McDonald's Presence

30 Nov, 2006 By: Jessica Wolf

McDonald's Corp.-owned Redbox is expanding its pairing of DVD rental vending machines and fast food.

The company is expanding into even more locations of the ubiquitous burger joint. Redbox kiosks will begin appearing in McDonald's restaurants in select new U.S. markets early next year, offering McDonald's customers the latest DVD titles for only $1 per night, according to the company. The agreement follows a two-year test with McDonald's.

McDonald's began testing Redbox fully automated DVD rentals in 2004 in Denver. Today Redbox kiosks are featured in more than 800 McDonald's restaurants in the following six markets: Baltimore, Denver, Houston, Minneapolis, Salt Lake City and St. Louis.

Redbox is the exclusive DVD rental kiosk supplier for McDonald's, said Gregg Kaplan, company CEO.

“In the last 12 months, we've garnered more than 15 million rentals at McDonald's locations alone,” he said. “Whether renting at kiosk or online, Redbox looks forward to providing our customers with even more locations to rent and return nationwide.”

This summer Redbox launched a program that allows users to select and pay for a rental on the company's Web site and pick it up at the location of their choice. Redbox renters can return titles to a different location than they rented it from, another recent offering.

Redbox announced expansion plans following its main competitor TNR Entertainment's announcement of plans to boost its presence in Kroger grocery store locations. This week, TNR announced it is launching nearly 200 of its The New Release kiosks into the Atlanta locations of the grocery chain.

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