Starbucks
has become one of the last in-store physical CD distributers since many of the
big box retailers have closed their doors. Starbucks customers are all about
brand loyalty and many of them discover new music, artists and applications due
to the curators at Starbucks. Albums and books have been placed at the cash
wrap for years grabbing the attention of customers while also playing softly in
the overhead speakers.
Starbucks
has decided to discontinue carrying physical albums in stores as the format has
seen a decline in sales across retailers. Music has long been one of the
chain’s top earners outside of coffee and will continue to be a focus of the
retailer. Rather than offering albums in the physical format, Starbucks will
still curate music for its loyal customers in various formats.
As
customers, we are sure to experience more of Starbucks’ themed compilations and
single-song download promotions. The retailer has not released their plan for
music distribution at this time as the physical sales are to end in March.
Taylor Swift made headlines when she decided to remove all
of her music from streaming giant Spotify. This decision was made pending the
release of her latest album and led many to question the success of the album
and any singles since digital streaming would be significantly impacted. The
bold move may have proved to be genius as Swift’s single “Shake It Off”, led
among the publishing charts. The song helped lead Sony to its 10th
consecutive leading quarter and held a
steady number 2 on the charts. The charts are comprised of information compiled
by Neilsen Music based on radio airplay.
The fourth
quarter charts also meant big changes for Big Machine and Reach Music as both
companies were in the top 10 for the first time. The songs responsible for the
chart placement were Maddie & Tae’s “Girl in a Country Song” and Charli
XCX’s “Boom Clap.
Sony/ATV currently holds 26.2% of the popular music publishing market share with
Universal Music Publishing Group holding 15.3% of the market. This shows that major
publishing companies still have footing in the industry.
The Starbucks story is very interesting. I don't drink coffee and have been in Starbucks only a handful of times, so I didn't notice any books or albums for sale. Having these sales is a great way for Starbucks to expand their brand. By associating themselves with more than coffee and supporting ideals that expand the brand, Starbucks continues to be at the forefront of brand marketing. It would be a shame if they were to lose this branding tool as it also helps local artists. It will be interesting to see how they continue to hold this market. Will customers purchase music and books through a Starbucks digital medium?
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