Starbucks Refines Entertainment Strategy

Starbucks Refines Entertainment Strategy
April 28, 2008

Seattle-based Starbucks Corp. announced that it is restructuring its entertainment business to focus on digital strategy and core content with music and books. As part of this restructuring, Starbucks will continue its relationship with the Concord Music Group and will turn over the day-to-day management of the Hear Music Record Label to Concord. Starbucks will also continue its relationship with the William Morris Agency to identify book projects that it can offer in its stores, as well as provide strategic counsel on opportunities in the entertainment space. With the Apple and AT&T strategic relationships, Starbucks will look for ways to enhance the customer experience through the use of Wi-Fi and other in-store technology. "As part of our ongoing transformation, we are committed to examining all aspects of our business that are not directly related to our core," said Howard Schultz, chairman, president and CEO of Starbucks. "We have had numerous successes in music and books...However, now is the appropriate time to restructure our entertainment business to better align our efforts with our overall business strategies." As a result of the entertainment reorganization, Ken Lombard, senior vice president and president of Starbucks Entertainment, has left the company to pursue other business interests. Chris Bruzzo, chief technology officer, has been promoted to senior vice president and will assume the leadership helm of the entertainment category as part of his responsibilities.