RedBox Continues Growth Momtentum

Piper Jaffray recently completed its 20th bi-annual teen survey, a national study of 6,000 teenagers' buying patterns and preferences. It asked high school students how they currently rent movies and how they expect to rent movies in two years. 40% indicated they currently use kiosks, which is an all-time high from the survey. Renting from retail stores is decreasing in popularity as 59% of teens use stores today, down from 79% one year ago. With over half of teens still using retail stores, however, Piper believes the potential for further share gains is underestimated. Redbox, which is owned by Coinstar

is well positioned for continued growth in movierentals. The company participates in one of the alternative rental models (i.e. non-retail rental) and arguably benefits most directly from the retail segment that will likely be down over the next two years. CSTR closed Tuesday at $43.17 Is AAPL a Buy, Sell or Hold? Click