Coffee and a newspaper and a new CD?

After Christmas, expendable cash and coffee in hand, I was lured to a stop by the numerous racks of new release CDs cluttering the aisles at Starbucks. As if there wasn't already enough stuff lining the minimal crowd space, it seems as though Starbucks has the habit of strategically placing racks of CDs along - or, rather, in - the walking routes. Customers almost have to stop and look as they wait to maneuver around and get in or out of the store. This was my case as I stopped and picked up the new Damien Rice CD. A sucker for interesting cover designs and a desire for an impressive collection of music on my bookshelf - I bought the CD.

When we spoke in my Music Industry class earlier in the semester about Hear Music and the various Starbucks initiatives to market records, it struck me as a great idea. A person who is likely to spend $3+ on a cup of coffee everyday is also likely to spend $12+ dollars on a CD they want. They're already in the mindset of treating themselves to something personal. What is more personal than a personalized CD? Or a great CD of melodies and lyrics one can identify with?

This is precisely the tactic the corporation aimed to take in 1999 when it acquired San Francisco-based Hear Music. A 2005 Wall Street Journal article quoted Starbucks' Chairman Howard Schultz as recognizing the Starbucks in the music industry. With Hear Music, people could choose their music the way they choose their coffee.

Similarly, a Business Week article from 2004 recognized that Starbucks was never been about the coffee and the undeniable success of several artists' new releases could be contributed in part to their distribution at Starbucks - particularly artists of the "Baby Boomer" generation, such as Ray Charles (whose 2004 release, Genius Loves Company, sold nearly 1/3 of its copies at a Starbucks retailer). At that time, Starbucks aimed to open Hear Music media and coffee bars in multiple cities around the country. These bars would display kiosks where the younger, 18-24 generation could select individual tracks and upload immediately to their iPod or mp3 device.

Not a year and a half later, most have been shut down. While on their website info., Hear Music still boasts kiosk stations in several cities around the country, it was published months ago that Starbucks closed every location but Santa Monica and would not install in any new stores. Corporate executives may be tight-lipped about precise numbers earned off of CD and music sales, but it is clear that the younger generation is still not interested in buying music the way Starbucks presented it.

It seems as though there could be little more convenient way to purchase music. Almost daily I walk into a Starbucks completely packed with iPod-toting USC students on the corner of Jefferson and Hoover. It's my distinct impression that music and coffee are integral components of many college students' daily ritual. Perhaps if Starbucks cut the price of individual tracks downloaded from kiosks they could make themselves competitive with iTunes; or they could establish some sort of rewards program whereby for 'x' number of drinks one buys they can download 'x' number of songs for free; or they could another sort of incentives program, offering specific new music only available at Starbucks retailers.

The demographic that frequents Starbucks is similar to the demographic that has money to purchase iPods and download from iTunes. It has the potential, if they can market sufficiently to their target young adult audience, to become a Best Buy or Walmart of sorts.. the customer goes in the store to buy one thing and comes out with multiple purchases.

Good food, good drink and good music: little things that can make life much sweeter. It seems logical that they would go hand in hand. All it takes is a good marketing strategy.