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PART I
Special Note Regarding Forward-Looking Statements
This Annual Report on Form 10-K (“Annual Report”) contains forward-looking statements. These statements
relate to future events or our future financial performance. In some cases, you can identify forward-looking
statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “should” or “will,” or the negative of such terms. Forward-looking
statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the
risks outlined under Item 1A, Risk Factors and elsewhere in this report, that may cause our or our industry’s actual
results, performance or achievements to be materially different from any future results, performance or achieve-
ments expressed or implied by the forward-looking statements. You should not place undue reliance on these
forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements
are reasonable, we cannot guarantee future results, performance or achievements. We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise, unless required by law. Unless the context requires otherwise, the terms “Coinstar,” the “Company,”
“we,” “us” and “our” refer to Coinstar, Inc. and its subsidiaries.
Item 1. Business.
Summary
We are a multi-national company offering a range of 4th Wall»solutions for retailers’ storefronts. The 4th Wall
is typically an area between the cash registers and front door of retail locations that in the past has generally not been
managed to optimize revenue per square foot. Our services consist of self-service coin counting, self-service DVD
kiosks where consumers can rent or purchase movies, entertainment services such as skill-crane machines, bulk
vending machines and kiddie rides, money transfer services, and electronic payment (“E-payment”) services such
as stored value cards, payroll cards, prepaid debit cards and prepaid wireless products via point-of-sale terminals
and stored value kiosks. Our products and services can be found at more than 90,000 points of presence including
supermarkets, drug stores, mass merchants, financial institutions, convenience stores, restaurants and money
transfer agent locations.
We launched our business in North America with the installation of the first Coinstar»coin-counting machine
in the early 1990s and in 2001 we began offering our coin services in the United Kingdom. Since inception, our
coin-counting machines have counted and processed more than 393.4 billion coins worth more than $21.6 billion in
more than 583.1 million transactions. As of December 31, 2008, we own and operate more than 18,400 coin-
counting machines in the United States, Canada, Puerto Rico, the United Kingdom and Ireland, of which
approximately 11,000 are E-payment enabled, and more than 145,000 entertainment services machines in the
United States, Puerto Rico and Mexico. We also utilize more than 23,000 point-of-sale terminals for E-payment
services in the United States and the United Kingdom and offer our money transfer services at over 38,000 locations
worldwide.
On January 1, 2008, we exercised our option to acquire a majority ownership interest in the voting equity of
Redbox Automated Retail, LLC (“Redbox”) under the terms of the LLC Interest Purchase Agreement dated
November 17, 2005. In conjunction with the option exercise and payment of $5.1 million, our ownership interest
increased from 47.3% to 51.0%. Since our original investment in Redbox, we had been accounting for our 47.3%
ownership interest under the equity method in our Consolidated Financial Statements. Effective with the close of
this transaction on January 18, 2008, we now consolidate Redbox’s financial results into our Consolidated Financial
Statements. Through our majority ownership interest in Redbox and our acquisition of DVDXpress in 2007, we
provide self-service DVD offerings through over 13,700 kiosks where consumers can rent or purchase movies.
On January 1, 2008, we acquired GroupEx Financial Corporation, JRJ Express Inc. and Kimeco, LLC
(collectively, “GroupEx”), for an aggregate purchase price of $70.0 million. GroupEx provides money transfer
services throughout the United States, Mexico and Guatemala.
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