It is not a good sign. Starbucks (SBUX) will give away 50 million downloads as part of its new service with Apple (AAPL). The venture allows iTunes customers to go online for free at Starbucks locations and connect to the download service.
According to Reuters from October 2 to November 7 at more than 10,000 U.S. Starbucks locations, customers can receive "Song of the Day" cards redeemable on Apple’s iTunes store for a complimentary song hand-selected by Starbucks Entertainment.
At the standard iTunes rate of $.99 a song, the deal could cost Starbucks $50 million. And, it is giving away a WiFi connection that it usually charges for through T-Mobile.
Why would Starbucks do this? It may be that foot traffic to its stores is slowing. Same store sales at the coffee chain have been modest this year. SBUX management could be seeing more of the same for the fourth quarter and are willing to invest in the iTunes promotion to help move the numbers up.
Giving away songs. Not a sign of strength.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
