Starbucks Kills The Music, Drops CD Sales
Going Like Sixty — June 29, 2008 — Business
References: nytimes & alleyinsider
Starbucks wants to give you more than just a buzz when they introduced music sales. However, the buzz on CD sales was more like a irritating hum.
The NY Times reports that Starbucks was selling just a couple CDs per store each day. So why did it take so long to realize that nobody buys CDs and everyone really wants MP3s?
They must not have been paying attention. Could it be SBUX will get back to it's bean counting? By this fall, stores will dump almost all CD slots and hope you will use their free Wi-fi to buy your music online.
The NY Times reports that Starbucks was selling just a couple CDs per store each day. So why did it take so long to realize that nobody buys CDs and everyone really wants MP3s?
They must not have been paying attention. Could it be SBUX will get back to it's bean counting? By this fall, stores will dump almost all CD slots and hope you will use their free Wi-fi to buy your music online.
Trend Themes
1. Digital Music Sales - Starbucks eliminating CD sales in favor of online digital music sales presents an opportunity for digital music platforms to partner with and integrate into Starbucks' free Wi-Fi system.
2. In-store Exclusives - Starbucks' move away from physical CD sales allows them to focus on offering customers exclusive in-store music experiences and events, including artist performances and album premieres.
3. Brand Partnerships - Starbucks' shift towards promoting digital music sales creates opportunities for brand partnerships between music streaming platforms and Starbucks for co-branded marketing campaigns and promotions.
Industry Implications
1. Music Streaming Platforms - Music streaming platforms can capitalize on Starbucks' elimination of CD sales to partner with Starbucks for in-store and online promotions and digital music integration.
2. Live Music Venues - As Starbucks shifts towards offering exclusive in-store music experiences and events, live music venues can partner with Starbucks to promote their own events or artist performances at Starbucks locations.
3. Branded Consumer Goods - Starbucks' shift towards digital music sales allows opportunities for branded consumer goods companies to partner with Starbucks for co-branded marketing campaigns and promotions, such as offering free downloads with the purchase of Starbucks-branded products.
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