Redbox plans to roll out its DVD rental kiosks in thousands of CVS locations nationwide.
The companies announced a deal to install the $1-per-night DVD machines in about 700 CVS stores by the end of the year, and many more by the end of 2011.
And every one is assembled in a huge Creedmoor factory, about 30 miles north of Raleigh. That plant, run by contract manufacturer Flextronics, employs about 255 people and in May threw a lunch party to celebrate shipping the 25,000th Redbox.
Redbox is already available in 23,000 locations. The company is adding features as it competes with Blockbuster Express, which is rushing to install its kiosks in retailers such as Kerr Drug, Sheetz and Rite Aid.
The Redbox agreement marks the first time that CVS will offer a DVD rental service to consumers, and significantly expands Redbox’s presence in the drug store sector.
Each vending machine holds 720 DVDs. Redbox recently began offering Blu-ray discs at select locations and some sell DVDs, too.
Read about the Creedmoor factory where the machines are made here.