Company Loans DVDs Via ATM-like Kiosks

June 29, 2004 -- It's 2 a.m. Do you know where your movies are?

When it comes to renting a DVD, consumers already have plenty of choices, from mail-order setups such as Netflix to the local store of national chains such as Blockbuster or Hollywood video.

But now a new option is in previews — automated DVD vending machines. Much like ATMs, these DVD and video game disk dispensers are self-contained "stores" that can be placed practically anywhere to reach consumers looking for a quick entertainment fix.

Last month, for example, fast food giant McDonald's announced it would expand a pilot program to install such DVD rental machines in more than 100 of its restaurants in the Denver area. The idea, said officials at the restaurant chain, is to give its customers an extremely easy way to "get dinner and a movie."

The latest entrant into the self-serve rental experience has a bit of a different approach on how to serve entertainment junkies.

MoviebankUSA, a four-month old startup in New York City, is working to roll-out a movie-rental concept that borrows both from the high-tech world and from more familiar neighborhood video stores.

The company, backed by private European investors, plans to open a 24-hour storefront that contains only self-service machines made by Video Systems Italia of Verona, Italy.

The ATM-like machines are essentially personal computers that use Microsoft's Windows XP operating system. Each ATM-like machine feature a touch-sensitive screen, a small keypad, a credit card reader, and a dispensing slot.

To use the machine, consumers can browse for a title with a touch-screen display. To rent a particular title, a user merely swipes his credit card on a machine and a robotic arm behind the screen scans its inventory for the correct tamper-resistant, bar-coded DVD and dispenses it.

A flat-fee of $3.50 is charged to the renter's credit card or debit card account for each 24-hour period they keep the DVD.