CORRECTED - CORRECTED-(July 29)-UPDATE 2-Coinstar DVD growth slows; shares f

(Corrects paragraph 6 to show that the latest 2010 revenue view excludes the money transfer business. This story also incorporates earlier corrections to remove reference to a cut to full-year revenue view, and to the Q2 revenue figure comparable to market estimates)

* Q2 DVD rev growth slows

* Q2 cont ops EPS $0.39 vs est $0.33

* Q2 adj rev $366.6 mln vs est $381.5 mln

* Shares fall 12 pct in post-market trade

July 29 (Reuters) - Redbox owner Coinstar Inc (CSTR.O) posted weak quarterly revenue as sales growth in its DVD business slowed, sending its shares down 12 percent in extended trade.

Revenue growth at the primary DVD segment -- about 80 percent of total sales -- slipped to 44 percent in the second quarter, down from the 70 percent growth in the first quarter. The segment grew 99 percent in 2009.

In May, Coinstar shed its electronic-payment services business to focus on its DVD rental kiosk business and better compete against rivals Netflix (NFLX.O) and Blockbuster Inc BBI.N. [ID:nSGE64P0L5]

Last week, Netflix also posted weak quarterly revenue as many new subscribers signed up for lower-priced plans that offer unlimited streaming. [ID:nSDN211075]

DVD rental companies have been moving to Web video subscription from physical DVD distribution, as customers opt to stream movies and TV shows rather than order discs via mail.

Coinstar now expects 2010 revenue of $1.43 billion to $1.51 billion, excluding revenue from its money transfer business that the company plans to sell.

In May, the company had forecast full-year revenue of $1.51 billion to $1.60 billion, which included revenue from money transfer.

On Thursday, it also raised its 2010 profit outlook range by 6 cents to a new range of $1.88 to $2.00 a share.

Coinstar, which also operates coin-counting machines, posted an almost two-fold increase in second-quarter net income to $13.4 million, or 41 cents a share.

Income from continuing operations was 39 cents a share, beating analyst expectations of 33 cents a share.

Revenue rose 35 percent to $342.4 million. Including $24.2 million from the discontinued operations, the company saw adjusted revenue of $366.6 million.

On that basis, analysts were expecting revenue of $381.5 million, according to Thomson Reuters I/B/E/S.

Shares of Bellevue, Washington-based Coinstar, which have risen more than 85 percent in the last six months, were trading down $3.89 at $44.20 in extended trade. They closed at $48.09 Thursday on Nasdaq. (Reporting by Sayantani Ghosh and Anurag Kotoky in Bangalore; Editing by Maju Samuel and Savio D'Souza)