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 MINNEAPOLIS (AP) - The big red vending machine at the McDonald's whirrs and hums and spits out rental DVDs of Chicken Little and King Kong — and maybe, if McDonald's is lucky, profits.
Machines run by McDonald's Corp. subsidiary Redbox Automated Retail have popped up in hundreds of Golden Arches restaurants in six cities in an experiment to see whether they drive more customers into the stores. Rental chain Movie Gallery is experimenting with DVD rental machines, too, saying the machines will make rental transactions easier for customers and make its stores more efficient.
The spread of DVD rental machines comes as rental stores are struggling under a business model that hasn't changed much from the mom-and-pop video stores of 20 years ago. The rental business has suffered from the sale of cheap DVDs, rent-by-mail services like Netflix Inc., and expanding video-on-demand from cable companies.
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