Want a DVD with your Big Mac?
McDonald’s is expanding its DVD rental kiosk program across several U.S. markets next year. That new agreement calls to double the number of kiosks (from 800 to 1,600) by the first half of next year. Restaurants in select markets will begin offering the service in 2007. Exact locations will be announced in the coming weeks.
The rollout follows a two-year test between McDonald’s and Redbox Automated Rental, LLC. Over the last year, redbox has reported more than 15 million rentals at McDonald’s location, the company said.
The red kiosks hold up to 500 DVDs, including latest releases. New releases are added to the kiosks each Tuesday. Consumers use the self-service machine by selecting a movie title and using a debit or credit card as payment. DVD rentals cost $1 per night. No membership fees or late fees are required and movies can be returned to any redbox kiosk. Customers who don’t return the DVD after 25 days can keep the movie, but must pay a $25 rental fee.
“Redbox’s quick, self-service transaction, $1 per night price point and convenient rent-and-return anywhere policy make it a perfect fit for McDonald’s restaurants, saving busy families and customers of all ages a stop in their day,” Greg Waring, vice president, marketing, redbox, said. “Redbox gives customers another reason to visit McDonald’s locations
McDonald’s began testing the concept in Denver in 2004. Since then, the company has added the service to more than 800 restaurants beyond Colorado, including Baltimore, Houston, Minneapolis, Salt Lake City and St. Louis.
“We see a tremendous value in what redbox has to offer McDonald’s customers,” William Whitman, McDonald’s spokesman, said. “Our customers are always looking for convenience, value and variety. We think redbox offers these added benefits.”
Redbox will promote the expands via media buys in new market, including TV and radio spots, outdoor and direct response marketing.
Beyond McDonald’s, redbox has also installed its boxes at Stop & Shop supermarkets in the northeast, Giant Good grocery stores in Baltimore-Washington DC, both divisions of Royal Ahold.
To incent new customers, redbox is offering a free night’s movie rental in exchange for an e-mail address. Registration and a redbox locator is available online at redbox.com.
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