The challengers to Netflix keep appearing like the heads of a multi-headed hydra that refuse to die. Just when Wal-Mart had exited the DVD rental business, it looks like Netflix will soon be doing battle with another retail giant with a worldwide brick-and-mortar presence: McDonald's. Yep, that's right. Mickey D's is on its way to becoming Mickey DVDs with the creation of a new subsidiary called Redbox Corporation that specializes in automated DVD rentals. So far, Redbox has only expanded to seven states, including five locations in Hartford and 19 in Washington, DC. New York, though, is only a hop, skip and shuttle ride away.

Dave Taylor of the Intuitive Life Business Blog, explains why Redbox could revolutionize the business of DVD rentals:

"It wasn't until I visited their Web site that I knew why this company is one to watch, and why agile little Redbox is going to redefine the entire world of DVD rental... It turns out that Redbox is a wholly-owned subsidiary of McDonald's Corporation, which was a delightful surprise: while McDonald's might not be where I personally go for something to eat, I certainly recognize that it's an omnipresent company with a remarkable reach into both our society and culture. Who better to tilt at the windmill of traditional DVD rental than a multi-billion dollar mainstay of the corporate world beloved by millions of people?"

(Hat tip: Hacking Netflix)