Starbucks' Media Bars Being Downsized.
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.
Music Groups