Coinstar (NASDAQ:OUTR), best known for its coin-counting kiosks and as the parent company of the Redbox DVD/video game rental machines, is expanding its automated retail empire. In partnership with Starbucks-owned Seattle's Best Coffee, Coinstar will be rolling out 500 self-serve "Rubi" coffee kiosks in supermarkets and retail centers by the end of the year.

Coinstar has an incredibly high growth rate, trades for cheap multiples, and dominates the market's DVD rental segment. In short, it has a lot going for it. However, with the movie-rental industry in steep decline, Redbox won't suffice as Coinstar's bread and butter forever.

That's where the new Rubi kiosks come in. While they may or may not provide the ultimate long-term solution, this year's massive nationwide rollout signals that Coinstar is diversifying away from Redbox. Motley Fool retail editor/analyst Austin Smith emphasizes the key importance of this diversification, as well as Coinstar's ability to continue rolling out novel kiosk designs in the future.

Coinstar's self-serve kiosk-based business model has allowed it to rise to the top and continue to thrive in a sinking-ship industry. Netflix, on the other hand, is no longer the darling of Wall Street that it once was. But with a potential 600 million customers around the world, could it soar high again? Check out our premium report for both the bull and bear cases on Netflix. Just click here to start.