Did you ever see a Redbox DVD rental kiosk and wonder just how it all works? How can they rent DVDs for a dollar when Blockbuster or Netflix can't? Well, that's what everyone is wondering, particularly since Hollywood refuses to supply Redbox with major releases.

The Business Insider
alleges that Redbox's supply is coming from everyone's favorite retail chain: Wal-Mart. An anonymous source claims to have seen a Redbox employee buy 100 copies of Ice Age 3 at Wal-Mart with a special gift card, and claimed that the retailer and the DVD renter have a "special" relationship.

Redbox denies the claims, and The LA Times reports that they've actually filed a lawsuit against retail outlets such as Wal-Mart, Best Buy, and Target because they've limited the sale of new releases to three copies per individual. Redbox insists they've done so under the pressure of Hollywood studios, and that it's a ploy to keep Redbox from buying and supplying their customers with $1 rentals. The studios and stores deny the claims, and insist it's always been standard policy to restrict individual sales in order to ensure there's enough to go around.

Which puts the Wal-Mart allegations in an interesting new light. A spokesperson for the store denied the lawsuit and the allegations they have a Redbox relationship. They insist they don't restrict the amount of new releases an individual can buy -- but they also swear they've never given discounts to Redbox employees. I imagine the truth will start to come out as Redbox continues to expand its cheap and cheery presence. Though they're allegedly struggling to fill their machines with hot DVDs, their expansion plans remain sturdy, and they plan on having 30,000 kiosks by the end of 2010.

Who here uses Redbox as their primary source for renting DVDs?