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McDonald's serves up DVD rentals in the US

MUMBAI: Burger chain giant McDonald's is eyeing the DVD rental market in the US. As part of their entry into the home entertainment market, the company has kicked off its DVD rental campaign, starting with 100 of its Denver area outlets.

Each store is being winged with a kiosk that can store up to 300 discs and some 30-40 current-release DVD titles.

Observers note that the penetration plans of McDonald's into a space dominated by rental chains Blockbuster and Hollywood Video and mass-market retailers like Best Buy and Wal-Mart could shake up the balance of movie retail power.

There seems to be a clear advantage for McDonald's in this new venture as the company has 30,000 outlets that serve a whopping 47 million people daily across the globe, while competitor Blockbuster has an inferior 8,900 stores only.

McDonald's Ventures managing director Mats Lederhausen is quoted as saying, "Satisfying new demands delivered at the speed and value of McDonald's is a fantastic way to leverage what McDonald's does best."

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