-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 PZMRviOlwYL+pYS5SLi97/oly9jyMfi3XWkcQsUV6r/iMCXrV7bxXgcPwEHXtfwT
 zUzrL4PdwoExPWJV/KEbZA==

<SEC-DOCUMENT>0001225208-09-003669.txt : 20090213
<SEC-HEADER>0001225208-09-003669.hdr.sgml : 20090213
<ACCEPTANCE-DATETIME>20090213180219
ACCESSION NUMBER:		0001225208-09-003669
CONFORMED SUBMISSION TYPE:	5
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090213
DATE AS OF CHANGE:		20090213

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Blakely James
		CENTRAL INDEX KEY:			0001294516

	FILING VALUES:
		FORM TYPE:		5
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-22555
		FILM NUMBER:		09605900

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(425) 943-8000

	MAIL ADDRESS:	
		STREET 1:		COINSTAR, INC.
		STREET 2:		1800 114TH AVE SE
		CITY:			BELLEVUE
		STATE:			WA
		ZIP:			98004

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COINSTAR INC
		CENTRAL INDEX KEY:			0000941604
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PERSONAL SERVICES [7200]
		IRS NUMBER:				913156448
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1800 114TH AVENUE S E
		CITY:			BELLEVUE
		STATE:			WA
		ZIP:			98004
		BUSINESS PHONE:		4259438000

	MAIL ADDRESS:	
		STREET 1:		1800 114TH AVENUE S E
		CITY:			BELLEVUE
		STATE:			WA
		ZIP:			98004
</SEC-HEADER>
<DOCUMENT>
<TYPE>5
<SEQUENCE>1
<FILENAME>doc5.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>5</documentType>

    <periodOfReport>2008-12-31</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <form3HoldingsReported>0</form3HoldingsReported>

    <form4TransactionsReported>1</form4TransactionsReported>

    <issuer>
        <issuerCik>0000941604</issuerCik>
        <issuerName>COINSTAR INC</issuerName>
        <issuerTradingSymbol>CSTR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001294516</rptOwnerCik>
            <rptOwnerName>Blakely James</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1800 114TH AVE. SE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>BELLEVUE</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>98004</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isOfficer>1</isOfficer>
            <officerTitle>VP, Sales</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2008-09-30</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>F</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>265</value>
                    <footnoteId id="F1"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>32</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>10837</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">Represents shares tendered for tax withholding on vesting of 4/1/2008 restricted stock award.</footnote>
        <footnote id="F2">Includes adjustment of (19) shares to correct the number of shares tendered for tax withholding on 2/20/2008.</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>Donald R. Rench, Attorney-in-Fact</signatureName>
        <signatureDate>2009-02-13</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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