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Music Media

Burnt Coffee and Burnt CDs 256

senzafine writes "Cnet reports that HP and Starbucks are jointly working on Storefront Coffeeshops which will allow people to browse and listen to music from a digital library...and have selected songs burned to cd. Sounds really cool...wonder how long before Starbucks and HP get John Doe lawsuits in the mail. --- But does this seem like an idea that would work?"
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Burnt Coffee and Burnt CDs

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  • Would it work? (Score:4, Insightful)

    by Anonymous Coward on Sunday March 14, 2004 @04:46PM (#8563565)
    Yes. Would the prices be reasonable? Doubtful.
    • Re:Would it work? (Score:5, Informative)

      by Anonymous Coward on Sunday March 14, 2004 @05:17PM (#8563751)
      the prices are:

      You get 5 tracks for $6.99 and $1 per each track after 5. With your CD you get a custom designed cardboard package with user designed 4 color insert) plus a four color image (and your CD title) printed on the CD itself (no sharpies used here).

    • And what of the selection? A bunch of rap, cuntry western, and '80s hair metal, while potential posing a threat to the sleeping-aid market, are not likely to part this particular fool from his money.
      Being able to, say, put all four parts of Rush's Fear trilogy(?) on a single disc would be kinda useful...
  • by tarzan353 ( 246515 ) on Sunday March 14, 2004 @04:46PM (#8563567)
    There is currently alot of controversy around the "sharing" of digital music files over the objections of the copyright holders (RIAA for short). Some users feel guilt (occasionally shown as defiance) over having received something valuable so cheaply.

    I'd like to calm the rhetoric. Sure, common sense would indicate the RIAA's copyrights have been violated. But copyright has been heavily legislated over the past century to the point that common sense or common law is nearly absent. It has such things as compulsory licences and device royalties. Morality should be confined to governing personal actions and advocating revisions to intellectual property law. It is disingenuous for the RIAA to invoke morality when if anything they have had excessive influence in crafting legislation.

    IANAL but lets look at the law. Once you know the tokens, legalese is not usually harder to parse than APL :) Apologies for a US-centric viewpoint but I believe a statutory situation exists in all other common-law countries with different details. There's an excellent copy of the United States Code, Title 17 - Copyrights at Cornell [cornell.edu]. Chapter 10 covers DIGITAL AUDIO RECORDING DEVICES AND MEDIA . Particularly interesting is:

    Sec. 1008. - Prohibition on certain infringement actions... No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium, an analog recording device, or an analog recording medium, or based on the noncommercial use by a consumer of such a device or medium for making digital musical recordings or analog musical recordings

    Simply breathtaking! The words "this title" mean Title 17, which contains all of US copyright law. The first "based on" means these things are not actionable as contributory negligence ("burglars tools"). The second "based on" means non-commercial use of these things does not violate copyright. Wow!

    The definitions in Sec.1001 would seem to include computers. They sure are designed, advertised and used that way amongst others. But all is not [Guns'N'] roses. The manufacturers of these recording devices would seem to owe a device tax that gets paid through the Librarian-of-Congress (of all people!) to the RIAA as specified. There are also requirements related to the Serial Copy Management System. I trust that RIAA have settled this with their long-standing antagonists, appliance manufacturers, now including Dell, HP, et al. But even if not, how does it affect me?

    The term "noncommercial use" would almost certainly cover receiving music files to make recordings on a hard-disk. Offering to transmit music files might not be covered and fall under the exceptionally byzantine Sec.114 as an "interactive service". But a lawyer specialising in Copyright law should be able to give a better interpretation including case precedents. The Diamond Rio MP3 player case [gigalaw.com] is probably relevant. Is there a lawyer in the house?

    • You're an idiot (Score:3, Informative)

      by Anonymous Coward
      And you want to know why? Because you have no clue as to how to read the law.

      Sec. 1002. - Incorporation of copying controls

      No person shall import, manufacture, or distribute any digital audio recording device or digital audio interface device that does not conform to -

      (1)

      the Serial Copy Management System;


      Computers do not conform to SCMS. So either computers are illegal or computers cannot be considered a digital audio recording device. It's your choice. I'd rather pick choice #2.
    • by MC_Cancer_Pants ( 728724 ) on Sunday March 14, 2004 @05:28PM (#8563823)
      I'm not sure where you went to law-school (probably not Cornell) but section 1008 mentions nothing of the importation or distrobution of the actual copyrighted material. Section 1008 simply protects CDRs Inc. from being brought to court because their customers were selling copyrighted music on their CDs.

      In short: It states that the manufactures are not responsible for what the customers choose to do with their products. I don't know where you drew from this that the customers therefore have the right to "the "sharing" of digital music files".
      • In short: It states that the manufactures are not responsible for what the customers choose to do with their products. I don't know where you drew from this that the customers therefore have the right to "the "sharing" of digital music files".

        So your interpretation of the law differs from his..? Why is yours correct and his incorrect?
        • So your interpretation of the law differs from his..? Why is yours correct and his incorrect?

          Because the original poster's is wrong, maybe?

          Look at the piece that the original poster even pasted:

          No action may be brought under this title alleging infringement of copyright based on the manufacture, importation, or distribution of a digital audio recording device, a digital audio recording medium...

          It's clear as day that they are talking about manufacturing/importing/distribution devices or mediums...
  • iTunes (Score:5, Insightful)

    by BWJones ( 18351 ) * on Sunday March 14, 2004 @04:47PM (#8563571) Homepage Journal
    Given HP's recent relationship with Apple on a rebranded iPod, does that mean that 1) the tunes sold in starbucks will be AAC and/or 2) that iTunes will be involved?

  • hmm (Score:2, Insightful)

    by ibmman85 ( 643041 )
    sounds like a neat thing to try.. not really sure if it's incredibly practical.. or if anyone would care after the initial 'wow' and 'hey thats kinda cool; thing wears off
  • by graveyardduckx ( 735761 ) on Sunday March 14, 2004 @04:48PM (#8563577)
    ...as saying "All your coffee are belong to us." during a raid of a local Starbucks while seizing 20 computers, 400lbs of coffee beans, and a 12 year old Indian girl with one leg.
    • 20 computers, 400lbs of coffee beans, and a 12 year old Indian girl with one leg.

      I think you have these figures wrong... the figures were likely quoted in the news. According to the RIAA, it was 400 computers, 8000 lbs of coffee beans, and a 240 year old Indian girl with 20 legs.
  • w00t (Score:5, Funny)

    by Pumpernickle ( 720937 ) on Sunday March 14, 2004 @04:49PM (#8563585) Homepage
    Coffee - and coasters to put the mugs on, too! It just doesn't get better than that... :)
  • Hot CDs (Score:2, Funny)

    by tronicum ( 617382 ) *
    will they also label the CD-R as hot as they do with coffe cups in America?
  • by G4from128k ( 686170 ) on Sunday March 14, 2004 @04:51PM (#8563593)
    This distribution method seems ideal for Linux also. Perhaps if HP weren't afraid of MS, we could also get nice bootable Linux distro while waiting for a venti mocha.
    • by PacoTaco ( 577292 ) on Sunday March 14, 2004 @06:55PM (#8564344)
      At first I was doubtful that someone would be able to work a Linux comment into this discussion. Thank you for restoring my faith in the community.
  • by Junior J. Junior III ( 192702 ) on Sunday March 14, 2004 @04:51PM (#8563594) Homepage
    I don't know, this sounds like a dumb idea to me. I mean, I just don't see the synnergy between the two brands. If I want to go out for coffee, I go out for coffee. If I want to listen to music, I either go to a club or (back before I decided to boycott music) check out a music store. I guess some people go to coffee places to pick up girls and flirt, and amongst the young musical tastes can be a critical selection trait, and the young are an attractive demographic to target, but even so I don't see this catching on, really.
    • by mynameis (mother ... ( 745416 ) on Sunday March 14, 2004 @05:00PM (#8563646)
      The biggest practical problem with selling custom CDs is that it takes time. I mean most of us get annoyed waiting for our 'coffee like beverage' from vending machines.

      In reality the casual-cup-time should nicely eliminate the percieved lack of instant gratification.

    • by Anonymous Coward on Sunday March 14, 2004 @05:25PM (#8563804)
      Actually Starbucks has been in the music business since before 1999. In 1999 they aquired a small company called Hear Music. Hear Music prides itself on being a small group of people who really know and love music. Hear Music are the same people who program the music you hear in the Starbucks stores and the same people who create the starbucks compilations.

      Hear Music also has a few record stores in California. The store in Santa Monica re-opening on tuesday has been on the third street promenade for over 6 years.

      So where is the synergy? How about picking up a latte and then listening to any CD in the store -- full length CD, not 30 second samples.
      • Glad someone pointed that out. I usually try to support local businesses over chain stores, and was shocked to find out that Hear Music was owned by Starbucks.

        I shop at Hear Music because the staff is friendly and knowledgable, and the music selection is excellent -- different then most of the stuff you hear on the radio.

        Hear Music sells many, many compilations from a number of different genres. I always thought it would be a great idea for them to allow people to burn their own compilations.
    • by Drantin ( 569921 ) on Sunday March 14, 2004 @05:34PM (#8563858)
      Let's say you're sitting at a Starbucks, drinking some coffee. You hear a song over the speakers you happen to like. All you have to do is call out: "Could I get this on a CD, please?" They burn you the CD. On your way out (or right then) you pick it up... It works perfectly together...
      • So I go to a public place & I hear a song that I like. Hmmm. Possible but unlikely. Most places play songs that are acceptable by many, and liked by none. At least none that are in the right age to buy lots of music. Somebody know a funky Starbucks out there?
      • Let's say you're sitting at a Starbucks, drinking some coffee. You hear a song over the speakers you happen to like. All you have to do is:
        - open your wireless-enabled latop
        - Google a line of the lyrics to get the artist's and song name
        - fire up iTunes (heck, LimeWire if you're brave)
        the song is on your laptop faster than they can sprinkle cinnamon on your overpriced java.
        I don't think it works that well with the mp3 crowd.
        • so many flaws... cant resist.

          open your wireless-enabled latop

          and if you don't have one? (i dont)

          Google a line of the lyrics to get the artist's and song name

          You know, not all music (including most played at a place like starbucks) has lyrics.

          And of course, you'd still have to pay starbucks' overpriced wireless charge to get on their network at all.
    • by beforewisdom ( 729725 ) on Sunday March 14, 2004 @08:02PM (#8564717)
      Some people just like to get out of the house.

      If you don't want to go to bar, go shopping, or go get a meal there are not that many places to go.
      ( oops....forgot the library and church ).

      What is left is Starbucks or other coffe houses.

      Its the closest thing America has to a neibhorhood pub where you can get out of the house and just hang without being a consumer.

      Steve

    • by Bodrius ( 191265 ) on Sunday March 14, 2004 @11:26PM (#8565681) Homepage
      I'd say the amount of Barnes & Nobles, Borders, and similar bookstores that have their own coffee shop inside, speaks of the synergy they want to exploit.

      This is not new at all. Already people go to Borders to hang out, have coffee, check out some books and CDs... and leave with some bags of new stuff.

      Some time ago, just as they learned that their business is media, bookstores learned that retention over time (browse, browse, browse) is the key to increasing their business. Coffee shops, poetry readings and social events are such forms of retention. Corporate bookstores are the new mini-malls.

      A common complaint of the typical college file-sharer (precisely the age demographic that most often does the above in my experience), is the songs-I-want : CD-price as a factor limiting the amount of CDs they would buy. They spend some time browsing, listening to CD samples, and at the end they have to choose which one to buy because they like 3 songs from different CDs but each costs 20 bucks, and they can only afford one.

      Given a choice to spend money per song plus media, they'll take it and be more satisfied customers. And satisfied customers are more likely to rationalize to themselves larger expenses, buying those 2 CDs they can barely afford becuase it's exactly what they want anyway. By lowering the price barrier you increase the rate of impulsive buys.

      This is part of why iTunes is successful; and these are sales straight out of the "browse, sample, buy" market of Virgin, Borders et al. It only makes sense puts 2 and 2 together and embeds the new business model with the old retention scheme.

      I'm only surprised it's HP and Starbucks we're talking about, and not Borders, or Barnes & Nobles, partnered with either.

  • by dealsites ( 746817 ) on Sunday March 14, 2004 @04:52PM (#8563597) Homepage
    Why must everyone be involved with music these days? Pepsi, Coke, Starbucks....

    What's next? I'm going to get a free song with a Happy Meal? I guess there are a lot of execs out there that think if you don't offer music in one way or another, then you must be doomed. I esitmate that in a few years, we will be back to several high quality music choices.

    --
    Real-time deal updates [dealsites.net]
    • by Galvatron ( 115029 )
      Here's the issue: music used to be expensive (full albums $18, singles $6). Now, music is getting cheap, or at least affordable (albums $10, singles $1). That makes it a perfect thing for companies to give away. People are still used to thinking of music as expensive, but in actual fact, that is an incorrect assesment. So a music giveaway seems like a better deal than it really is, so everyone's rushing to offer free music before perceived value falls to current market levels.
    • I guess there are a lot of execs out there that think if you don't offer music in one way or another, then you must be doomed.

      The problem with most execs is that they can't come up with anything original, so they follow in others' footsteps. What happened to innovation?

      What's worse, it seems that the whole internet has become a venue to distribute music (and pr0n, of course). In my eyes, this has put this great tool (the internet) at a new low. It's like buying the latest and greatest graphics card just

    • "hat's next? I'm going to get a free song with a Happy Meal? "

      I bought a drink at a movie theater that came with a little CD with some music on the lid. They don't fly very well, though.
    • What's next? I'm going to get a free song with a Happy Meal?

      Actually, there is a rumor floating around that McDonald's may give away 1 billion songs at some undetermined point in the future.
    • It's not necessarily music, but other draws to the business. They already provide a place to meet & socialize and/or sell, and access the internet. Starbucks is not really even in the *coffee* business; it's just one of the incidental profit centers. Good thing too; they would never make it just on the merits of their coffee; they depend on customers for whom coffee is just an indifferent-tasting warm brown liquid used primarily as a delivery mechanism for caffeine and sugar.
    • You're not going to believe this, but in one of my weaker moments, I bought a Hunger Buster McDs combo, and it came with a $10 music voucher on "selected titles" at Sounds music store.

  • Well... (Score:3, Informative)

    by Gunsmithy ( 554829 ) on Sunday March 14, 2004 @04:53PM (#8563606) Homepage
    This actually would work out quite nicely for Starbucks, because all music [i]currently[/i] in store is put out by their own label.
  • by HebrewToYou ( 644998 ) on Sunday March 14, 2004 @04:54PM (#8563610)
    I'm curious as to what possible reasoning Starbucks used to enter this completely alien market. There's little money to be made from it and it seems impractical due to the time required to both burn the CD and create the playlist. Unless their goal is to keep the customer in their store for longer periods of time -- which I could see as a viable business model -- there really doesn't seem to be any strategy involved.

    As an employee of a publically-traded rival corporation [Peet's Coffee & Tea] I'm not exactly unbiased here, but I'm wondering what others have to say about the strategy behind such a radical departure from the typical role of a coffee shop.
    • bingo (Score:5, Interesting)

      by MacAndrew ( 463832 ) on Sunday March 14, 2004 @05:06PM (#8563680) Homepage
      i think they do quite a bit in the hope of luring customers and getting them to linger to maybe buy a second round or other stuff. they play music, provide tables outside, sell newspapers, easy bwireless access.... i'm not that wild about their coffee buy will pay extra not to be told to leave right away. :)

      also i suspect starbucks feels pressure to continually reinvent itself rather be perceived as yesterday's coffee news. notice how mcdonalds introduces new items of dubious value to get some buzz and quietly drops them later. (or such is my impression, i don't eat there anymore.)

      now if only starbucks could make coffee that didn't taste burnt. i like underdogs, good luck peet's. we have an indy coffee place nearby that has *couches* and wireless..... i doubt the chains will go this far, that's just a bit too inviting.
    • by glk572 ( 599902 ) on Sunday March 14, 2004 @05:35PM (#8563862) Homepage Journal
      Having worked in retail I can tell you that the way to raise profits isin't by attracting more customers, it's selling more product to the customers you have. If you already have a good sized customer base why not offer a service that let's you bilk a few extra bucks off the people already in your store. It's a lot like the gun and candy etc. that you see in the check out lines at grocery stores, it's a place that people spend time, so put a few high margin items there for them to buy. People swing by a coffie shop, spend some time, buy a cup of coffee for $4.00, if you can sell a tenth of them a cd for $10 you've raised your average recept by a dollar, a 25% increase. That's where the $$ is.
      • It's a lot like the gun and candy etc. that you see in the check out lines at grocery stores

        Well, that's what you get for doing your grocery shopping at the WalMart near Charlton Heston's house ;-)

    • Peet's Coffee, eh? I just discovered that stuff a few weeks ago and I have to say that it's the best coffee I've ever had the pleasure of drinking! I'm making some right now. Keep up the great work :)
    • When I first saw this, I thought of it as a natural outgrowth of a cyber cafe. They already have the basic computer equipment (for internet browsing, etc.). Why not leverage it more and pick up some extra cash?

      Starbucks was already adding cyber cafe equipment, which is as close to the original purpose as leaving out newspapers (people read the newspaper and order an extra cup or two of coffee while they finish). This gives that equipment a use in the evenings when people aren't normally sitting in a caf
  • by fembots ( 753724 ) on Sunday March 14, 2004 @04:55PM (#8563615) Homepage
    If HP and StarBucks can get this going legally and without hassles from RIAA et al against them or customers, wouldn't the next logical step be offering downloads directly to your iPAQ?
  • by shoppa ( 464619 ) on Sunday March 14, 2004 @04:57PM (#8563629)
    This will work, while the "create-your-own-CD-in-the-record-store" ideas have all failed. Why? Because coffee stores don't sell stamped music CD's. Music stores do sell stamped music CD's. Every burnt CD a music store sold was probably a loss of three stamped CD's they might have otherwise sold.

    Who loses in the end? The music stores, anyway.

    • Because coffee stores don't sell stamped music CD's. Music stores do sell stamped music CD's.

      I don't know about your local starbucks, but my local starbucks sells stamped CDs, assuming you mean non-burn offical release CDs. I don't know of a Starbucks that doesn't have music during business hours, sometimes after, and offer the CD. Some even have listening stations as well.

      Besides, I thought music stores were loosing out to walmart rather then burn on demand systems.
  • Good Idea (Score:3, Interesting)

    by SisyphusShrugged ( 728028 ) <(me) (at) (igerard.com)> on Sunday March 14, 2004 @04:59PM (#8563641) Homepage
    It sounds like a pretty good idea to me, but there seems to be one mistake in the post, I am pretty sure that they would go ahead and clear the music to be downloaded legally via iTunes or something like that, rather than illegally via P2P, and thus avoid any "John Doe" lawsuits.
  • I'm using my T-Mobile wireless connection right now to burn a music CD in Starbucks.

    Maybe I'll low-ball them on the price for a music CD.

  • by Bilestoad ( 60385 ) on Sunday March 14, 2004 @05:01PM (#8563653)
    Sure, they'll make big bucks with just Britney, Justin and Limp Bizkit available. Cause everyone knows people who drink coffee at Starbucks don't have taste.
  • by CrazyTalk ( 662055 ) on Sunday March 14, 2004 @05:02PM (#8563658)
    The article states that Starbucks is working in conjunction with Hear Music. I know that in Chicago, there is (or was, havent been there in awhile) a Starbucks that had a Hear Music CD store next door. The two stores were connected, and you could bring your coffee in with you while you browsed for CDs and listened to music at the listening stations. Sounds like this is just a natural extension of that. And I think its a great idea. I'm not too optomistic about getting one in Pittsburgh, however, where the only common record store chain (NRM) is long since gone and bankrupt and a Virgin Megastore or even a Tower Records has never touched the shores of the Mon River. But I digress.
  • by wfbush ( 136129 ) on Sunday March 14, 2004 @05:04PM (#8563666) Homepage Journal
    I think the reason for the music tie-in is that there's more and more competition for the coffee-drinker's dollar and they need to come up with new ways to stand out. Within two blocks of my apartment, there's a Starbucks, a Seattle's best, and two local coffee houses. 10 minute's walk up the street, there a cluster of about 6 more coffee places, including 2 Starbucks at the same intersection.

    But between the insane cost and the burnt flavour of their coffee, I never go to Starbucks and the ability to put together a CD isn't going to entice me.
  • by Easy2RememberNick ( 179395 ) on Sunday March 14, 2004 @05:08PM (#8563690)
    HP can pay back the Canadian DND in songs and coffee. $160 million...now that is a lot of beans.
    Either that or the military will fly a Sea King helicopter over their headquarters (Canadians will find that last bit funny).
  • by cgenman ( 325138 ) on Sunday March 14, 2004 @05:11PM (#8563711) Homepage
    Have they even been into one of their shops recently? On any given morning the place is packed beyond all reason. Adding a laptop listening station and headphones will only add to that problem.

    There are three types of people in starbucks: Those freaky, overhyped, quad-shot espresso people, who are terminally late to work and just forgot to pick up their kids from soccer practice; the blue collar men in dirty clothes who are so relaxed you would think someone slipped prozac into their spam; and the college kids / young pros with their laptops who come to get some work done in the peace and quiet of a store full of caffeine withdrawal victims screaming for soy milk in their peppermint no-whip half-caf grande white mochas. None of the above seem like the type who would hang out to pay for music... too busy, occupied, or just poor. Admittedly, this might fly in the retail store locations (the Starbucks in Barnes and Noble, for example), as they draw a more relaxed, less goal-oriented crowd, but I can hardly see their host stores being happy about the competition.

    Starbucks does this every now and then. They had that crazy arrangement with Kozmo before they went Kaput, whereby drop-off stations were strategically placed in every Starbucks in exchange for some significant quantity of realbucks. Kozmo might actually have made it if it wasn't for that tremendous monetary commitment.

    Personally, I don't see this arrangement being significantly more successful than that one.

    Oh well. They've got the money to try, I guess. Someday they'll find another use for their successful cafe chain. Besides, of course, being the seat of power for Mister Evil. Sorry, Doctor Evil.

    *full disclosure- used to be a Barrista. I was young, I needed the money.
  • One good aspect (Score:5, Insightful)

    by pbooktebo ( 699003 ) on Sunday March 14, 2004 @05:34PM (#8563856)
    One thing that could be effective here is the following:
    1. A song is playing in Starbucks.
    2. You like what you hear.
    3. You go to the "jukebox to go" (or whatever they will call it), click the "buy what's on now" button, and pay $1 for the song and $1 for the CD ($2.00 total).

    I keep thinking about the scene in High Fidelity, where John Cusack says "I'm going to sell a copy of x album right now" and then puts on a record. Sure enough, someone comes up and asks what is playing and buys it. The impulse buy in an environment is powerful. I often hear things in record stores, etc. and would love to have an easy way to buy it.
    • Re:One good aspect (Score:3, Informative)

      by owlstead ( 636356 )
      I often hear things in record stores, etc. and would love to have an easy way to buy it.

      Walk to record store guy that's selecting the music. Call out that you wanna have the CD with the song he/she is playing. Buy CD. Which part is confusing you?
  • "wonder how long before Starbucks and HP get John Doe lawsuits in the mail"

    Answer: Never.

    Here's a clue about how to avoid lawsuits: don't break the law.

    <bart

  • by linuxbaby ( 124641 ) * on Sunday March 14, 2004 @06:09PM (#8564108)
    A much more interesting article about this appeared a while back, called Starbucks to Begin Sinister PHASE TWO of Operation [theonion.com].

    Snippet from the article:
    Those living near one of the closed Starbucks outlets have reported strange glowing mists, howling and/or cowering on the part of dogs that pass by, and electromagnetic effects that cause haunting, unearthly images to appear on TV and computer screens within a one-mile radius. Experts have few theories as to what may be causing the low-frequency rumblings, half-glimpsed flashes of light, and periodic electronic beeps emanating from the once-busy shops.

  • iPod (Score:5, Interesting)

    by IanBevan ( 213109 ) * on Sunday March 14, 2004 @06:55PM (#8564347) Homepage
    Burn to cd ? Not so useful. But burn to your iPod there and then.. now *that* would be good.
  • by eggboard ( 315140 ) * on Sunday March 14, 2004 @06:55PM (#8564348) Homepage
    Here's what I posted on Wi-Fi Networking News [wifinetnews.com] about why Starbucks efforts are misguided:

    Starbucks reportedly to offer music burning service in up to 2,500 stores: The system will allow customers to have CDs burned while they wait; eventually, it will also allow downloads of music over Wi-Fi, the article in BusinessWeek says.

    Starbucks demanded a T-1 (1.544 Mbps in each direction) digital service infrastructure from its first hotspot partner, MobileStar, as well as its second, T-Mobile. I've speculated for a while on how this high-speed network could be used to cache material in each Starbucks, like movie and music downloads.

    This latest project sounds somewhat misguided for the reason cited by the Forrester analyst in the article: Your typical barista may be great at making espresso but is not in a position to fix the broken CD burner.

    My cousin Steven was involved almost 20 years ago with a company called Personics. The company had worked out a catalog licensing deal with more than 70 labels from the largest down to some independents to allow them to offer custom mix tapes for about a buck a song. This was a reasonable price in those days. The system had a few thousand songs mastered onto CD-ROMs stored in a special employee-operated CD-ROM changer behind the counter. An employee would punch in your choices, and the system created a high-speed cassette tape dub.

    The company failed for two primary reasons: the hardware was proprietary, meaning that engineers had to fly around the country to fix it when it inevitably had glitches; and the catalog they offered too small because labels balked at including their most popular stuff for fear of cannibalizing pre-recorded CD and tape sales. (Price, my cousin reports, was not a problem: many customers were willing to pay even more, he noted to me after this item was originally posted.)

    If Starbucks creates the expectation of an easy process that's always available and then isn't available even part of the time at any given store, they lose their audience. Starbucks makes its money from processing a high volume of custom drinks--you don't want to distract from that. CD burners aren't that difficult to keep operating, but a failure rate that's a fraction of that experienced by typical home and business users could be a dramatic problem in a high-expectation retail environment.

    The article says the price is comparable to Apple and other download services. Two problems with that comparison. First, it's not. It's $7 for five songs, or 40 percent, or $13 for an album, or 30 percent higher. That's a significantly different price when you're dealing with price sensitivity. It's comparable to a mass-produced discounted audio CD.

    Second, you're receiving an audio CD, not digital music per se, which could be a turnoff for the audience that might be interested in a fast, in-store music service. (However, since HP is the partner, and is reselling their own version of the iPod, it's possible that the ultimate digital delivery system will be a version of the iTunes Music Store.)

    This is the latest incarnation of Compaq-cum-Hewlett Packard's attempts to capitalize on their relationship as a supplier to Starbucks. In January 2001, when the MobileStar deal was announced for installing hotspots, Starbucks made a big deal about Microsoft and Compaq's participation. Compaq wasn't a partner, though; Starbucks had signed a $100 million, five-year deal to buy equipment and services. Microsoft was a partner, and it never seemed to amount to anything that saw the light of day.

    In the years since this deal, Compaq and then HP have reaped advertising benefits, appearing in full-page newspaper advertisements as part of the Starbucks hotspot system, even though they had nothing to do with MobileStar and T-Mobile's deployment. At one point, Starbucks had Compaq iPaq's available for customers to play with, and those disappeared, too.

    It's this fumbling that's I orig
  • by Crypto Gnome ( 651401 ) on Sunday March 14, 2004 @07:02PM (#8564389) Homepage Journal
    Nobody else has, and the article was certainly not even thinking of going there.

    What exactly are they selling?
    • a Raw Audio track in all ways identical to what you get when you purchase a mass-market factory-pressed CD?
      (ie buy ~16 of these and you have "an audio CD")
    • the WAV file equivalent?
    • the {insert preferred lossless encoded format here} equivalent?
    • a 320Kbps encoded MP3? (ie plays everywhere and not-quite-but-nearly-as-good-as-lossless)
    • a 16kbps encoded MP3? (ie totally-crap-but-still-plays-anywhere)
    • the {insert hellspawn DRM managed format here} equivalent?
    Methinks people need to wake up and smell the HYPE.

    If this was a shameless attempt to score off the recent Digital Music wave, it didn't work. Yahoo Finance shows SBUX Stock [yahoo.com] didn't do all that well Friday (Reuters had this news [yahoo.com] Thu March 11 ~8pm)
  • That seemed like an odd comment, certainly they are doing this with permission from the record companies, much as iTunes did.
  • by csoto ( 220540 ) on Sunday March 14, 2004 @07:20PM (#8564491)
    I want it beamed straight to my iPod, or I'm not interseted.

  • by beforewisdom ( 729725 ) on Sunday March 14, 2004 @07:57PM (#8564698)
    This is a great idea.

    Many people want custom mixed CDs, are willing to pay for them, but they are not willing to pay for a high speed connection or for a huge collection of second hand CDs in order to get the individual songs they want.

    Steve
  • Do you really think that HP and Starbucks would just skip over the licensing and royalty stage of doing this?
  • by mcrbids ( 148650 ) on Sunday March 14, 2004 @10:59PM (#8565557) Journal
    After being pampered by the likes of Kazaa I decided I wanted to buy a music CD.

    I've purchased indie bands online, but I really haven't been in a music "store" for a decade. I quickly found myself in a foreign place.

    There were a number of albums for the artist I wanted, while the one I'd specifically decided to buy wasn't in stock.

    I decided that maybe I'd buy something else, too, but just as quickly found that *gulp!* there's no way to sample the tunes before you buy!

    So, you spend $12-$20 without being able to "kick the tires" and no way to sample the tunes first?

    Just rediculous. I'm surrounded by thousands of albums from hundreds of artists, and have no idea what I might be interested in.

    I eventually bought a mediocre "Alanis Morrissette unplugged" CD that I really don't appreciate all that much - she sounds bored, without her usual passion and fire.

    Preview, then buy? I might very happily do it! Ever see Magna Tunes? [magnatunes.com]
  • by Petronius ( 515525 ) on Sunday March 14, 2004 @11:50PM (#8565794)
    Muzak announces the "Muzak burner", coming to an elevator near you:

    "Can't get enough of that cool version of 'One Note Samba' while riding your way to the 20th floor? Press the [Muzak-burn] button, swipe your credit card, and VOILA... your CD is ready by the time the doors open."
  • by mrogers ( 85392 ) on Monday March 15, 2004 @09:28AM (#8567799)
    I guess the Digital Revolution In Music we've been hearing about for so long is finally starting to arrive. What would kids who saw the birth of rock'n'roll make of it? In the 50s you had to physically travel to the record shop, listen to the latest releases in a booth, and buy them on little 7" plastic discs if you wanted to take them home. How things have changed! Nowadays you can just go down to Starbuck's, listen to the latest releases on your headphones, and buy them on little 5" plastic discs if you want to take them home. And for 3 quid you can buy a cup of coffee as well! Somebody grab my arm, the pace of social change is making me dizzy.

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