In an attempt to cut costs and focus on coffee, Starbucks has turned over control of its Hear Music venture to its partner, Concord Music. Starbucks will apparently keep a stake in the company, but will not handle day-to-day operations. (We have a call in for more details.)
"As part of our ongoing transformation, we arecommitted to examining all aspects of our business that are notdirectly related to our core," said Howard Schultz, chairman, presidentand CEO of Starbucks. Citing the eight Grammy Awards the label's artists have received, he continued, "now is the appropriate time to restructureour entertainment business to better align our efforts with our overallbusiness strategies."
As part of the shift, CTO Chris Bruzzo will take over for Ken Lombard, Starbucks' entertainment group president, and Concord Music will now be solely responsible for signing artists.
With releases from Joni Mitchell, Dave Matthews, Lyle Lovett, Gloria Estefan, the Beastie Boys and many more, Hear Music has quite the roster. But apparently, each store only sells about two CDs per day. Perhaps Concord will have better luck with the artists it chooses.
(via PaidContent)
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