Starbucks Gets Into Downloadable Music Biz
By George Anderson
Starbucks’ chairman Howard Schultz told Business Week, “This is not a test. We’re going for it.”
Mr. Schultz was talking about the coffee shop chain’s decision to offer a downloadable music service in 2,500 U.S. locations over the next two years.
The new service will give customers the ability to listen to any of 250,000 songs on a computer and have those they have chosen burned onto a CD to bring home. Starbucks will
charge $6.99 for a minimum purchase of five songs with albums costing $12.95.
“We have a unique opportunity to leverage the trust people have in the (Starbucks) brand,” Mr. Schultz said.
Hal Gaba, co-owner of Concord Records said, “There is no question in our minds that this is the future of music distribution. It’s a significant enhancement of the iTunes experience.’
Moderator’s Comment: Does Starbucks entry into the downloadable music arena represent
the future of music distribution?
Starbucks sells the experience. That will only become richer (and so too will Starbucks BTW) as a result of offering this service.
For those who have purchased Starbucks’ music collections in the past, we among them, going to a shop to hang out, drink coffee, listen to and download
music is an experience we know we’ll enjoy. We just hope the service works with Macs and not just PCs. – George
Anderson – Moderator