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Is Starbucks now running, not walking, from its music-related forays? According to a Silicon Alley Insider report Wednesday, the answer is yes. "We hear that by September, the chain will have dumped almost all of its in-store music retail offerings," offered Alley's Peter Kafka. That would include CDs, iTunes gift cards, and other related merchandise, according to the article, though the sources of the information are unclear.
Still, the more pronounced shift would not be surprising. Several months ago, Starbucks started stepping away from its music-related joint venture with Concord Music Group. In late April, Starbucks entertainment chief Ken Lombard exited, and the coffee giant started refocusing on its core business. "As part of our ongoing transformation, we are committed to examining all aspects of our business that are not directly related to our core," Starbucks chief executive Howard Schultz explained.
All of that comes against the backdrop of a worsening economy, rising gas prices, and a sinking housing market, a combination that is squeezing demand for higher-priced drinks, snacks, and music purchases.
Permalink: http://www.digitalmusicnews.com/stories/062508starbucks
Related article (registration required):
"Starbucks Reconsiders Music Ambitions... Lombard Out," April 24, 2008
http://www.digitalmusicnews.com/stories/042408starbucks
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