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Starbucks cuts Hear Music kiosk program

May 24, 2006

Seattle Post-Intelligencer: Starbucks Corp. has quietly pulled CD-burning kiosks out of most of its Austin, Texas, and Seattle stores. It started with 45 in 2004, with plans to go nationwide, but has downscaled to five stores in each city. Experts blame iPods and the ability to burn CDs on home computers for curbing the success of what Starbucks had hoped would be a hit.

"Launching the service without the ability for customers to download music directly to their MP3 players was a major misstep," said John Moore, a former marketer for the Seattle-based coffee giant who now runs Brand Autopsy, an Austin consulting firm.

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