Starbucks Music Chief Quits, Company Plans Move to LA
Los Angeles loses one (Warner Music) and gains a smaller one (Hear Music). Yesterday the Starbucks coffee chain's Hear Music label announced its VP of Music Dan MacKinnon quit the company, or rather, resigned for personal reasons, which is the corporate euphemism given to a situation in which somebody was forced out. Hear Music also confirmed that it was planning to relocate to Los Angeles from Seattle to be closer to...everything.
The New York Post calls the move a sign that the coffee chain has serious ambitions. One industry executive speculates Starbucks Entertainment head Ken Lombard "wants to go in a more commercial way rather than just being an indie tastemaker."
For those of you keeping score at home, Starbucks has become a significant force in music retail and an important tastemaker. It acquired the Hear Music chain in 1999 and integrated it into its coffee retail chain. Its Hear Music label scored a huge success, along with Concord, with Ray Charles' Genius Love Company. Its latest release is Sergio Mendes' Timeless, which has got some great reviews but so far has lukewarm sales. In 2004 the chain sold 3.5 million CDs in its cafes and music stores.
Music Groups