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A McDVD with those fries?
McDonald's is moving into the movie rental business, according to a magazine report
June 13, 2005: 2:53 PM EDT

NEW YORK (CNN/Money) - McDonald's isn't just for burger lovers anymore.

Just in time for summer road trips, the fast-food giant is testing a national DVD rental service, Wired.com reported Monday -- the same day that Minneapolis-St. Paul became the fifth market where McDonald's customers can rent a flick for $1 a day.

According to Wired.com, McDonald's plans to make the service available in 10 markets by year-end, raising the prospect that consumers one day could travel across country watching the latest releases while noshing on Big Macs.

McDonald's is testing the service through its Redbox subsidiary and will install DVD kiosks not just at its restaurants but also at grocers, which the online technology news site did not identify.

Wired.com noted that McDonald's is not the only company to expand into the DVD rental or sale business. In New York, Duane Reade drug stores and Price Chopper markets now rent DVDs.

At the same time, retail giant Wal-Mart Stores (Research) is exiting the DVD rental business to focus on disc sales. Wal-Mart in May announced a deal with Netflix (Research), the online movie rental outlet, whereby the two companies will cross-promote their separate DVD services.

Netflix, meanwhile, is locked in a price war with arch rival Blockbuster.

To find out more about Fortune 500 companies in the news, click here.  Top of page

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