CVS Caremark in DVD rental deal with Redbox

NEW YORK

Shoppers at CVS drug stores will be able to rent and return DVDs at Redbox kiosks under a deal announced Thursday between CVS Caremark Corp. and Coinstar Inc.

Redbox Automated Retail said its DVD rental kiosks will be in 700 CVS stores by the end of 2010, and in thousands of locations by the end of 2011. CVS Caremark has about 7,100 stores around the U.S.

The companies did not disclose terms of their agreement.

Redbox is based in Oakbrook Terrace, Ill., and is in about 23,000 locations. Customers can use the kiosk to find a movie, rent it with a credit card payment, and then return it to any Redbox location. They can also reserve a movie online and choose a kiosk to pick up the DVD.

Shares of CVS Caremark, which is based in Woonsocket, R.I., slipped 17 cents to $30.39 in midday trading. Coinstar shares rose $1.29, or 2.7 percent, to $48.70.