MORE Indie Invaders / POSTED BY: KINGSOFAR

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Starbucks has decided to walk away from the recorded music business.

Instead, ‘Starbucks will hand over day-to-day management of its year-old music label to Concord Music Group, as it strives to contain costs and rejuvenate its coffee shop business’.

‘Just recently Starbucks unveiled its Hear Music label with great fanfare. Paul McCartney was the first artist to release an album under the Hear Music label, which has since also released CDs by Joni Mitchell and James Taylor, among others’.

Ken Lombard, who oversaw Starbucks’ music unit for much of its existence, is also leaving the company.

This isn’t the first time Starbucks had a failure. In 2006, Starbucks promoted a movie, “Akeelah and the Bee,” which turned out to be a box office flop.

‘It also scrapped a plan to allow customers to create customized CDs in its stores’.

‘In recent months, however, the chain’s overall fortunes have soured due to a sharp downturn in U.S. consumer spending. On Wednesday, the company blamed hard-hit housing markets in California and Florida for slowing sales and warned that its quarterly and 2008 profits would be below expectations’.

“There are people who can handle it better,” Bob Goldin of industry research firm Technomic said of Starbucks’ music business.

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