May 24, 2006

On to Plan B. Consumers didn't take to the concept, so Starbucks is pulling out CD-burning kiosks from most of its Austin and Seattle stores. The chain, already a power in CD sales, had high hopes for its Hear Music media bars, but customers weren't responding.

Experts blame the iPod. Coolfer blames -- if there has to be blame put on somebody or something -- Starbucks for not giving consumers what they want. People don't want the CD to be a middleman unless it's a proper CD with packaging, not a CD-R. When kiosks can upload files directly to a customer's media player, then Starbucks will have a better chance of success with its Media Bars.

Back in December Coolfer posted about a report that business looked weak in the Media Bars, and quoted from a BusinessWeek article that called it "a sign that Starbucks is misreading its customers. The city is full of tech-savvy music downloaders who carry iPods, not portable CD players."

Follow the hardware, Starbucks, and you'll be fine.

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Posted by Glenn at 10:56 AM | | | Starbucks

[music jobs] HR Manager at EMI NA; New York, NY.