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Shop Talk

Retailers, consumers and prices

October 5th, 2006

Can you download a latte?

Posted by: Brad Dorfman
Tags: Uncategorized

starbucks.jpgFor those unconvinced that Starbucks coffee shops are ubiquitous, the company has opened a new location — on Apple Computer ’s  iTunes Web site.Starbucks and Apple agreed to set up a separate Starbucks Entertainment area within the iTunes online store. The store will allow users to download music from Starbucks’ Hear Music catalog, which includes songs from Ray Charles, Willie Nelson and others.

Starbucks, the world’s largest coffee chain, began selling music in its shops more than 10 years ago and acquired Hear Music in 1999.

The iTunes site will include playlists compiled by Hear Music and digital versions of many of the company’s CDs, Starbucks said.

The move goes beyond Starbucks previous attempt to put CD-burning stations in a handful of stores.

Starbucks did not pay a fee to become a part of iTunes and will share in the profits of the sales from the Starbucks Entertainment section, Michael Casey, Starbucks Chief Financial Officer, said. He did not give any additional financial details.

ITunes isnt the only place Starbucks is expanding. The company also said it now expects to grow to 40,000 stores from its current 12,241 locations, with Cairo and Sao Paolo among the newest locales.

But that global expansion shouldnt extinguish the sense of community at each Starbucks. Though the pub.jpgcommunity founder and Chairman Howard Schultz has in mind might be a little far from the companys Seattle roots.

“Not since the English pub has a company created this much community for people in their local neighborhood,” Schultz said in a meeting with analysts Thursday.

However, there could be a limit to the amount of community the average Starbucks customer wants. At the same meeting, another executive said 58 percent of the Starbucks opened this year have a drive-thru.

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