A spokeswoman says the movie rental company has secured agreements to set up kiosks at Walmart retail stores and convenience stores operated by Alimentation Couche-Tard Inc. (TSX:ATD.B).
The pilot project will be focused on the Toronto and Vancouver markets.
The company, which is a division of Coinstar Inc., hopes to install 2,000 to 2,500 kiosks in Canada over the next couple of years.
The DVD rental business has become a wide open market over the past year as Blockbuster Video stores closed down and Rogers (TSX:RCI.B) began a discount clearance of its inventory of rental items.
Redbox built its name in the U.S. marketplace renting DVDs for $1 per day, primarily at grocery stores, though its prices have since increased.