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 Home > Hardware News [ Submit News
Starbucks Scaling Back Entertainment Business
6/25/2008, by RobRich
 
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Starbucks once had a grand vision of promoting a viable music distribution business through its numerous retail locations, but industry insiders expect the coffee house will be dumping the bulk of its albums and iTunes gift cards by September.

The move shouldn't be a huge shock: Starbucks has been rethinking its forays into entertainment this year while it tries to restart growth in its core business. And its efforts to sell music in particular have come under heavy scrutiny: In March, a scathing New York Times article reported that the chain was selling just two CDs per store per day. A month later, Ken Lombard, the head of the chain's entertainment business, was bounced out, and the company handed management of its Hear Music label, which had just started releasing its own CDs, over to Concord Music Group.

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