The technology follows reported success in the USA with food chains such as Safeway and McDonalds installing the machines.

Similar to online movie rental company Quickflix, Instant DVD offers cheaper DVD rentals than bricks and mortar chains such as Civic Video, with $2.99 per night new releases.

The networked terminals allow the Instant DVD head office to gage which sorts of DVDs are popular in certain areas and match their inventory to fit. Also, if there is a problem with a terminal then head office can take-over remotely, meaning consumers rarely face a faulty terminal.

Around 500 terminals will be rolled-out through 2008 in IGA, Franklins and Woolworths, with more retailers to come.

The privately-owned company has bought the rights from USA company DVD Express and uses the same machines which are installed in retailers across the country.

According to Instant DVD business owner Ian O'Rourke, retailers who have installed the terminal so far have been pleased as it works as an incentive for consumers to purchase snacks when they hire a DVD.

O'Rourke says there is opportunity for the terminals to be installed in electrical retailers as Instant DVD isn't in the business of selling DVDs, only renting them.