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This is a pretty interesting story: Starbucks is getting out of the retail music business. According to CNet:
According to Silicon Alley Insider, Starbucks is planning to do away with its in-store CDs and other music-retail offerings by September.
Starbucks representatives were not immediately available for comment.
Seattle-based Starbucks once fancied itself as an entertainment center where people sipped coffee and grooved to the latest tunes. The company's dreams of branching into music has had a troubled past.
Remember the Hear Music media bars, the in-store CD burning service Starbucks began offering in 2004? That didn't go anywhere either.
Starbucks isn't giving up on music completely. The chain will continue to offer the free Wi-Fi access to Apple's online music store, Silicon Alley reported.
In March, The New York Times reported that each Starbucks store was selling only two CDs a day on average. Starbucks said its music unit was selling more than 4 million CDs a year.
Selling 4 million CDs a year and averaging 2 per store every day doesn't seem mutually exclusive, if you ask me.
1 imaginary dana said on June 25, 2008
That's really interesting -- I was under the impression that Starbucks was making money with music in a way few major labels are these days.
Hmmm.
2 Mike Mess said on June 25, 2008
I just spoke with a friend at a major label (that consequently began their 'major' lay-offs yesterday) and he told me that Starbucks will still carry compilations as he has projects for them that go through next summer. Consequently, those uber-lazy people who can't bother to buy whole albums can still get their ready-made compilations with their macchiatos. makes sense to me!
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