Thread

Starbucks music service

· Troubleshooting · 9 posts · Jul 17, 2004 View original thread ↗

#1 Sat, 17 Jul 2004 - 11:13

Starbucks is going to kick the crap out of Apple with the segment of the population that isn't tech savvy and has a decent disposable income. Too many people dont get excited about buying something online that isn't a tangible object. Couple Starbuck's no hassle creation with the customized artwork and packaging and you have a product that is more attractive to consumers then buying a bunch of 1's and 0's they can't touch.

http://www.fastcompany.com/magazine/84/starbucks_1.html

Quote:

Has she ever burned a CD for herself on a computer at home? Smallwood's expression is completely blank. "No, no, I've never done that. I don't know how." She's exactly why Starbucks thinks it can go up against Apple's more technology-oriented iTunes service. Smallwood will never know that there is a mini server farm hidden behind the service door at the back of the store. She just knows that for $6.99 for her first five tracks and $1 for each additional song, plus about a five-minute wait, she gets another beautifully packaged, personalized CD.

#2 Sat, 17 Jul 2004 - 11:23

Of course it's really convenient to drive to my local Starbucks in the Middle of Manchester, park the car, pay over �5 to do so, and then walk to the store.

This is really going to kick the crap out of Apple in Europe - NOT.

Starbucks are not that common here, and I also suspect people are not going to go out of their way in the USA to buy music.

Maybe they will make an impulse buy when they are there, but I suspect it will not become a music store.

These companies need to be careful or they will stray from their core product and suffer for it.

Ian

#3 Sat, 17 Jul 2004 - 11:27

It's not a threat at all.

Starbuck's service targets a completely different customer group. It won't take away iTunes marketshare at all.

And eventually, people might get hooked with Starbucks, but latter "upgrade" to iTunes...

I see no problem for Apple here...

-t

#4 Sat, 17 Jul 2004 - 11:52

You're right about the consumer base. The ones who Starbucks will target spend more money and almost certainly are willing to pay for convenience. For suburban adults, the soccer mom type, and for metro city dwellers who pass 5 Starbucks during a 10 minute walk this will be a much more attractive way to buy music.

I don't think it will steal customers from Apple in the short run but it will just be much more profitable then iTunes. People who have computers and broadband still steal more music then buy from Apple. But if this model works it will threaten places like bestbuy and Tower and will be another alternative to iTunes and it will hurt sales over time.

And I don't think anyone is worried about Europe just yet. If it works in North America and becomes popular and trendy Europe will line up to emulate them.

#5 Sat, 17 Jul 2004 - 12:10

It will fail. People go to Starbucks for coffee.

#6 Sat, 17 Jul 2004 - 14:01

I don't think this will do very well, but then again a couple months ago I swore up and down to my girlfriend that Apple would never make a pink iPod.

#7 Sat, 17 Jul 2004 - 14:07

It's an interesting concept, but I can't see how it would ever generate more than just incremental music sales. It's not exactly a great mass distribution scheme, many people who actually spend a lot of time at Starbucks DO have and use computers, and most people seem to want to be on their way asap after picking up their drinks.

#8 Sat, 17 Jul 2004 - 14:50

I think I'll go to Starbucks to use their wifi to download from ITMS.

#9 Sat, 17 Jul 2004 - 15:33

Quote:

Originally posted by waxcrash:
It will fail. People go to Starbucks for coffee.

I know a lot of other people who spend lots of time in Starbucks doing other things. (wifi use there is big)

It won't hurt iTunes, but they might get a decent amount of interest.