NY Times: Starbucks Stores Sell 2 CDs per Day; 4.4M Last Year

Authored by Mark Hefflinger on March 18, 2008 - 8:34am.

New York - Despite reporting sales of 4.4 million CDs in its North American stores last year, an annual increase of 22%, Starbucks (NASD: SBUX) only sells about 2 CDs per day at each of its stores, according to an estimate calculated by The New York Times.

While Starbucks disputed that figure, it declined to provide a different one.

Some customers are also dismayed that the company has gone from highlighting lesser-known artists to featuring the same fare that can be found at Wal-Mart, including albums from Alicia Keys and James Blunt.

Business partners have also complained that Starbucks is taking too large a percentage of music revenues, The Times reports, adding that the company's shift in direction has resulted in the departures of half a dozen senior executives from its entertainment unit.

However, Starbucks still typically accounts for 5% to 10% of an album's overall sales during the six or so weeks the album is features in its stores, music executives who do business with the company told The Times.

 

Related Links:
http://www.nytimes.com/2008/03/17/business/media/17starbucks.html

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