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June 25, 2008 10:12 AM PDT

Report: Starbucks scaling back music offering

by Greg Sandoval
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UPDATE: To include Starbucks' response.

Turns out what people want from Starbucks is the caffeine jolt and maybe a morning bun. The country's largest coffee chain is giving up on much of its music offering, including iTunes gift cards.

According to Silicon Alley Insider, Starbucks is planning to carry only four CD titles at a time in it's stores by September.

"We're shifting how music is merchandised in the store," said Bridget Baker, a Starbucks spokeswoman. "There's going to be a concentrated selection as we refocus on our core business."

Seattle-based Starbucks once fancied itself as an entertainment center where people sipped coffee and grooved to the latest tunes. The company's dreams of branching into music has had a troubled past.

Remember the Hear Music media bars, the in-store CD burning service Starbucks began offering in 2004? That didn't go anywhere either.

Starbucks isn't giving up on music completely. The chain will continue to offer the free Wi-Fi access to Apple's online music store, Silicon Alley reported.

In March, The New York Times reported that each Starbucks store was selling only two CDs a day on average. Starbucks said its music unit was selling more than 4 million CDs a year.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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