Starbucks To Stop Selling CDs
February 23, 2015 at 6:04 AM (PT)
Looks like the days you can get a copy of a BECK CD with your morning frapuccino at STARBUCKS are over. The SEATTLE-based coffee giant will no longer be carrying CDs in their 21,000 stores, instead reportedly replacing it with personalized digital download cards by the end of MARCH.
"Music has always been a key component at STARBUCKS," said spokeswoman MAGGIE JANTZEN told USA TODAY. "We are looking for new ways to offer customers music options."
STEVEN ADDIS, CEO of brand agency ADDIS says carrying the dying format makes STARBUCKS "look dated as a brand."
CD sales nationally dropped another 15% in 2014, which prompted the chain's move.
Selling music, according to ADDIS, "might not be much of a revenue generator but it's a relevance generator," prompting speculation STARBUCKS, which has always been a technology leader under CEO HOWARD SCHULTZ.
STARBUCKS will continue its PICK OF THE WEEK, in partnership with APPLE, offering free downloads for those who use the brand's app.
STARBUCKS' first CD in 1995 was a compilation CD dubbed "BLUE NOTE Blend." The chain acquired the record label HEAR MUSIC in 1999, and has sold CDs by the likes of PAUL McCARTNEY, BEYONCE, SAM SMITH, RAY CHARLES, TAYLOR SWIFT and the "Frozen" soundtrack.
STARBUCKS still is "evaluating" how to sell off its remaining CDs, while ADDIS suggests, if it weren't a space issue, the chain might consider selling the new hot format -- vinyl.