Redbox, a DVD rental kiosk company based in Oakbrook Terrace, IL, has struck a deal to expand to approximately 2,000 Walgreen's drug stores. Redbox units, which feature new movie releases for $1 a night, are already in nearly 250 of the drug store chain's units.

Following successful tests in Walgreen's in Chicago, Houston, Phoenix, and Columbus, OH, Redbox will install its kiosks in another 1,800 Walgreen's during this year and 2009. Among the benefits to Walgreen's is the kiosk's ability to drive frequent store visits.

This move follows a Redbox agreement to locate in a majority of Wal-Mart stores nationwide. There are currently more than 6,800 Redbox kiosks in operation, including at some grocery chains and select McDonald's restaurants.