What's the Deal with DVDs and Fast Food?

Joe Wilcox | May 24, 2004, 09:52 AM

Today's USA Today reports (here) that McDonalds is testing DVD-rental kiosks in Denver stores. I can say the kiosks had been sighted around Washington, D.C.--in suburban Virginia, anyway. According to USA Today, McDonalds might roll out the kiosks nationwide, depending on Denver's response. If Burger King responds, will "Have it Your Way" become a burger, fries, soda and "Matrix Reloaded?"

Last week, I ordered online from Papa John's, which offered a choice of one of three free DVDs with a large pizza. I passed and ordered the large without the freebee. I have no interest in "Weekend at Bernies," even for free.

So, I have to wonder about DVDs and fast food. Or food in general. My local Giant supermarket has a DVD-rental kiosk; 99 cents a day.

I've been using Netflix for more than four years, back when the operation charged about $3.50 plus shipping for DVDs. Now consumers pay a monthly fee to rent anywhere from two to eight DVDs. Apparently, Neflix is planning on offering download rentals, too.

Cheap or free DVDs raise some interesting questions about where the market is going and where its long-term growth potential lies. I wouldn't take "Weekend at Bernies" for free, but I would stand in line to buy "Lord of the Rings: Return of the King," which comes out on DVD tomorrow.

The concept of value, particularly with respect to time raises interesting questions about digital downloads and what people might be willing to pay to watch a rights-protected movie still in the theatre. So, I will watch with interest to see how far Netflix is able to take download rentals. Right now, competitors offer small catalogs of movies that already are on cable pay-per view or DVD.

Since this blog started with the topic of fast food: I've been unable to find the movie "Super Size Me" in my area. I'd gladly pay for a watch-once, rights-protected download. Could digital downloads open up distribution of smaller movies that can't reach the 4,000-plus theatres showing "Shrek 2." I hope so.