
June 27, 2008
After a high point a few years ago when the coffee chain successfully helped sell copies of a Ray Charles album, Starbucks’ efforts to retail music through its stores have not taken off.
According to the Silicon Alley Insider, “by September, the chain will have dumped almost all of its in-store music retail offerings… The pullback is still going to be bad news for the music industry, which doesn't need any more bad news. The industry had once hoped that the coffee chain could help replace the dying music store business.”
A New York Times article reports that Starbucks is only selling 2 CDs per day per store. Reasons cited: the chain has gone too mainstream with its music selection and has also alienating business partners by demanding too big a cut of the revenue.
Some are of the view that the coffee giant should now just stick to what it’s good at – brewing cappuccinos.