The Starbucks Music Store

My colleague Kelly and I went to Starbucks the other day. Exhausted from school, we sat in a corner drinking vanilla lattes, and, ultimately, feeling sorry for ourselves. And then I heard it. That song.

"Who is this?" I demanded.

"I don’t know," Kelly said.

It was imperative that I find out. And then I saw it. This screen.

"NOW PLAYING: SOME SONG BY SOME BAND"
(I’m kicking myself for not remembering the title now.)

If I had my laptop, I could have purchased the song from iTunes while at our table. This strategy thwarts the inevitable frustration in trying to locate the song now.

A recent New York Times article reports:

"For now, the new Starbucks service’s preying capabilities will be limited. The concept is being introduced in around 600 cafes in New York and Seattle only, though Starbucks, based in Seattle, and Apple, of Cupertino, Calif., plan to offer the service in other major cities late this year and in 2008."

Craving a slice of pumpkin bread, I made my way to the register. The cashier handed me a paper card in addition to my plastic.

It read “Song of the Day: Rissi Palmer: Country Girl / Come to Starbucks for a free new song, daily. Code on back."

Needless to say, I downloaded the song at home. (In addition to a song I thought was the one listed on the LCD. It wasn’t, of course.) Although I wasn’t impressed with the track, I must say, I am impressed with Starbucks ability to infiltrate the digital download market. The company has made an empire from espresso, and will amplify earnings, not through pastry, but through sound bites.

But, I have to wonder, who ultimately gains from the transaction? The artist, Starbucks or Apple? Does iTunes provide Starbucks a cut of the sales? Has Starbucks seen more business since offering the downloads? Do artists earn more than what they normally would from iTunes sales? Have any artists seen a rise in sales since Starbucks implemented this strategy? Have the artists on the download cards seen a rise in album sales since the cards were released?

I’m skeptical as to how lucrative this strategy is. If anyone knows where I can find these answers, feel free to point me in the right direction. I’ll buy you a latte.