The vending machines represent direct competition with videostores, such as Blockbuster, and offer two primary benefits toconsumers, Delouis says: "affordability and convenience." Pricesrange from as low as 99 cents for a six-hour rental to $2.49 for 24hours to customers who become MoviebankUSA members.

Membership is free, and in addition to preferred rates onrentals, it offers double the value of a prepaid membership card ona dollar-for-dollar basis, beginning with an initial $10. The newmember who prepays $10 gets $20 worth of rental power. The$100-prepaying member gets $200 worth of rentals. Customers do nothave to become members, but can use a credit card and rent moviesfor $3.45 for 24 hours, which is still about 50 cents less thanprices at video stores or through video-on-demand, according toDelouis.

Consumers can enroll for membership through the MoviebankUSAwebsite, a toll-free number staffed by the vendor, or onsiteregistration at a Duane Reade unit equipped with a MoviebankUSAmachine. Currently 10 Duane Reade stores have the machines and theyare being installed at a rate of two per week until year-end,Timothy LaBeau, the drug store chain's senior VP of merchandising,tells GSR. "By year-end we'll have 30 in place, and then we willevaluate their success. So far, they are doing better than weanticipated," he says.