Starbucks Changes its Tune from Jewel Cases to MP3s

3 Minute Ad Age: April 29, 2008

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NEW YORK (Adage.com) -- With last week's departure of its entertainment president, Ken Lombard, Starbucks is shifting focus from selling music CDs to encouraging its patrons to download music from the Web. After hitting it big with the Ray Charles album "Genius Loves Company," the coffee chain's Hear Music division never matched its initial success. Chris Bruzzo, Starbucks chief technology officer, is charged with transforming Starbucks into a digital entertainment company that hawks MP3s along with its lattes. In other news in this 3 Minute Ad Age report, Under Armour dashes ahead of Nike in the race to sell cross trainers and the online ad industry dodges the economic downturn.

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