updated 11:15 am EDT, Wed June 25, 2008
Starbucks dropping music
Starbucks Coffee will drop most of its music efforts by September, reports say. Indications are said to point to the company doing away with its full-sized CD racks, reducing selection to just four "slots" per store. Critically for Apple, it is believed the company will also drop all iTunes promotions, including gift cards and any special track offers. The one remaining Apple connection will be free Internet access for the iTunes Wi-Fi Music Store.
Starbucks is said to be experiencing severe problems in its music business, with distribution handed over from its own label to the Concord Music Group, and the New York Times reporting that each shop has been selling an average of two CDs per day. Despite this the company claims that it has been selling over 4 million CDs annually.