Seattle - Coffeehouse chain Starbucks (NASD: SBUX) has decided to further withdraw from the music business, and will reduce the number of CDs it sells in its stores by removing rotating CD racks in favor of showcasing just four album titles near store cash registers, the Seattle Times reported. "It's an opportunity to focus on a small number of titles and tell those stories well," Starbucks spokesman Doug Cavarocchi told the Times. The company also recently opted to shift management of its Hear Music joint venture record label to partner Concord Music Group.

Seattle - Starbucks (NASD: SBUX) has begun offering customers two hours of free Wi-Fi access per day through its new Internet partner, AT&T (NYSE: T), USA Today reports.

Los Angeles - Starbucks will test a new digital audio format, developed by veteran producer T-Bone Burnett and a team of engineers, on a forthcoming John Mellencamp album due for release via the Hear Music imprint, Digital Music News reported. The album, "Life, Death, Love and Freedom" is due for release on July 15, and will come both on CD and in the new "CODE" format -- which attempts to "closely mirror the fidelity of original, master recordings" -- on an included DVD that allows for transfers to computers and portable devices.

Seattle - Starbucks (NYSE: SBUX) announced on Friday that it is restructuring the entertainment side of its business, and, after just a year at the helm, will turn over management of its Hear Music record label to partner Concord Music Group. In connection with the change in strategy, Ken Lombard, SVP and president of Starbucks Entertainment, has left the company to pursue other business interests, while chief technology officer Chris Bruzzo was promoted to SVP and head of the Entertainment group.

Seattle - Starbucks (NYSE: SBUX) announced on Tuesday that it has partnered with Apple's (NASD: AAPL) iTunes Store to launch a Pick of the Week promotion, which will see 1.5 million free iTunes song and music video download cards distributed each week to customers in 7,000 U.S. Starbucks locations. The downloads will be selected by the Starbucks Entertainment team and iTunes. The first pick is the Counting Crows' new single, "Washington Square"; other artists on deck include Carly Simon, Adele, Sia and Hilary McRae. The companies said their previous Song of the Day promotion in October 2007 resulted in over 6 million downloads.

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.

Hollywood - Major record label EMI's Capitol/EMI Music Marketing unit announced on Tuesday plans to release a new "John Lennon Video Album" on Dec. 4 at Starbucks (NASD: SBUX) locations nationwide. The "album" will be sold on a "collectible" iTunes Digital Release card, featuring a "silver-toned photo of Lennon," for $24.95. The card will enable users to download the collection of 21 videos -- including "Imagine," "Happy Xmas" and "Working Class Hero" -- from Apple's (NASD: AAPL) iTunes Store.

New York - At least one major record label that partnered with Starbucks and other retailers to sell iTunes digital album download cards is happy with initial sales of the product, as Sony BMG said 6% (5,720 units) of all copies of Eddie Vedder's soundtrack to "Into the Wild" sold thus far were digital cards, Billboard reported. Earlier this month, cards redeemable for a single album for a particular artist -- plus extras like music videos -- went on sale for between $11.99 and $14.99 at Starbucks, Safeway grocery stores and other locations. "People are pleasantly surprised by the results," Sony BMG Music Entertainment senior vice president and general manager of U.S. digital sales Adam Mirabella told Billboard. "This is a new product, and the customers are just learning about it," EMI Music Marketing senior vice president of sales Darren Stupak told Billboard. "So the sales can only get better."

CNBC's Julia Boorstin attended our Digital Music Forum West last week at the Hollywood Roosevelt.  Check out her coverage here, and scroll to the bottom for her video report and interview with the President of Starbucks Entertainment, Ken Lombard.

Seattle - Starbucks announced on Monday that it will give away over 50 million free "Song of the Day" downloads from Apple's iTunes Store, in conjunction with the launch of its partnership with Apple to offer free Wi-Fi access to the store in its cafes.

Seattle - Confirming earlier rumors, Starbucks and partner Concord Music Group announced on Thursday that former Beatle Paul McCartney has signed on as the first artist on Starbucks' new Hear Music record label. McCartney's forthcoming album is slated for release early this summer and will be available at all traditional music retail outlets as well as in Starbucks locations around the world.

New York - Coffeehouse giant Starbucks, which in recent years has begun selling music in its stores with some success, plans to launch its own record label, the New York Post reported, adding that sources familiar with the plans say the company is close to a deal to put out a release from Sir Paul McCartney. While Starbucks' existing Hear Music venture releases compilation CDs featuring licensed recordings, the Starbucks Records label is expected to sign, record and produce its own artists. Sources told the Post that Starbucks could announce the label as early as this week.