Feb. 20, 2015
Starbucks to junk CDs
"Music has always been a key component at Starbucks," says spokeswoman Maggie Jantzen. "We are looking for new ways to offer customers music options."
It's about time, says brand guru Steven Addis, CEO of the brand agency Addis. "CDs make them look dated as a brand. They need to move to streaming and have their own streaming service."
CD sales nationally have been declining; they dropped another 15% in 2014, according to Billboard, the trade magazine that first reported Starbucks would drop CDs. Starbucks declined to disclose its CD sales.
Under CEO Howard Schultz, Starbucks had become increasingly tech-savvy, and was among the first to test and accept mobile payment. It's always pushing to move the tech needle.
Music and cultural coolness often go hand-in-hand. Selling music, in some form, "might not be much of a revenue generator but it's a relevance generator," says Addis.