The music industry's troubles continue to mount, with Starbucks now pulling back from the CD-selling business, reports Peter Kafka at Silicon Valley Insider. Record labels once viewed Starbucks as a promising outlet for the struggling music business.
Word about Starbucks came as deep staff cuts were underway at music labels owned by EMI, including Capitol Records. EMI in January announced it would reduce staff by about 2,000 because of falling sales of recorded music. The cuts amount to 30 to 40 percent of those working in recorded music at EMI, says Bruce Houghton at Hypebot.