starbucks struggles on, fires head of the entertainment division
Starbucks continues to struggle and is now looking to “examine all aspects of our business that are not directly related to our core” according to this article. This means that the first decision was to let go of Ken Lombard, the unpopular head of Starbuck’s entertainment division. That wasn’t unexpected, I covered this earlier this year. The unexpected part of the re-org is that Starbucks’ Chief Technology Officer has been chosen to run “the division which selects and markets music, books and other items sold in Starbucks coffee shops.” Mmmm, watch this space.
Here’s an excerpt from the article:
“Starbucks shook up its entertainment division on Thursday in the latest bid by the company to invigorate its sagging sales. The chief of Starbucks, Howard Schultz, center, and Ken Lombard, the entertainment unit president who has left the company. The overhaul comes a day after Starbucks said it would post weaker-than-expected earnings for the second quarter amid slumping sales and a darkening outlook for consumer spending.
In a statement, the chairman and chief executive, Howard Schultz, who has previously taken steps to bolster the chain’s coffee offerings, said the company was “committed to examining all aspects of our business that are not directly related to our core.”
As part of the changes, Starbucks said Ken Lombard, president of the entertainment unit since 2004, had departed. Chris Bruzzo, the chief technology officer, will take the reins of the division, which selects and markets music, books and other items sold in Starbucks coffee shops. Starbucks also said it would turn over management control of Hear Music, its in-house record label, to its partner in that venture, the Concord Music Group.”
Related Post: Starbucks’ Hear Music Program Messes Up.
April 25th, 2008 at 4:15 pm
I’m surprised that the band, Antigone Rising, their first signing as a “label” didn’t shoot entertainment profits through the roof. Weird huh?
http://www.antigonerising.com/
April 29th, 2008 at 7:16 pm
Sweet, sweet schadenfreude!
In (truly) dispiriting news, Too Pure and Beggars Banquet have been folded into parent group 4AD. I’m not too attached to Beggars, to be honest —the loss of Too Pure is much tougher to deal with. I’m not sure I can wrap my head around a Stereolab album stamped with a 4AD logo!
I wrote a little obituary (with some of my Too Pure favorite music) here: http://www.warpedrealitymagazine.com/2008/04/now_thats_disgusting_music_rip.html
April 30th, 2008 at 5:44 am
I wonder why that was necessary? Just more consolidation I suppose….
May 1st, 2008 at 1:42 pm
Someone pithier and more knowledgeable than I summarized the situation as “rearranging the deck chairs on the Titanic.”