Mumbai: Starbucks corporation will pull back on its entertainment business, handing over the management of its year-old, Hear Music Record Label to Concord Music Group. Though it will continue to work with the William Morris Agency to identify book projects and other entertainment opportunities, say agency reports.
Ken Lombard, who oversaw Starbucks' music unit since its formation is leaving the company. Chris Bruzzo, Starbucks' chief technology officer, will assume responsibility for the entertainment division, the company said.Admitting that the music business was not a big contributor to the company's result, the management is being passed onto Concord Music , which will assume responsibility for current and future artistes of Hear Music. Concord Music Group, was formed in 2004 with the merger of Concord Records and Fantasy Records. Besides the Hear Music joint venture with Starbucks, its projects include a revival of the classic Stax label for rhythm n' blues and soul music.
In 2006 Starbucks entered into partnership with Apple Inc to allow customers to buy songs wirelessly from the Apple iTunes music store without paying WiFi connection fees when they are in Starbucks stores. It will continue to maintain its relationship with Apple.
Starbucks Entertainment has also seen failures. In 2006, the company promoted a movie, "Akeelah and the Bee," which turned out to be a flop at the box office. It also scrapped a plan to allow customers to create customized CDs in its stores.
In recent months, the chain's overall fortunes has gone down due to recession in U.S economy causing a sharp downturn in consumer spending in the country. It blamed hard-hit housing markets in California and Florida for slowing sales and said that its quarterly and 2008 profits would be below expectations.
Former Beatle Paul McCartney was the first artist to release an album under the Hear Music label. It has also released CDs by Joni Mitchell and James Taylor, among others.