Once again, Starbucks is changing course when it comes to entertainment. The company announced today it is pulling out of direct management of the Hear Music label and instead will emphasize digital strategy and “core” content with music and books digital as Howard Schultz continues to assert his new vision. Managing a music label is not core, so the day-to-day operations will be turned over to partner Concord Music Group. Hear Music’s music label was officially called StarCon, and was a 50-50 JV between Starbucks and Concord…Starcon was formed in March 2007. So not sure: if Starbucks sold off its 50 percent stake to Concord.
But Starbucks will continue to work with the William Morris Agency “to identify book projects that it can offer in its stores as well as provide strategic counsel on opportunities in the entertainment space.” Schultz: “… now is the appropriate time to restructure our Entertainment business to better align our efforts with our overall business strategies.