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Starbucks Shakes Up Entertainment; Committed To Digital

A day after announcing it would post weaker-than-expected earnings, Starbucks says that Ken Lombard, president of the entertainment unit since 2004, has departed. CTO Chris Bruzzo will take the reins of the division, which selects and markets music, books and other items sold in Starbucks coffee shops.

The shift of the entertainment unit to Bruzzo's control underscores Starbucks's interest in pursuing sales of music and other products online. Starbucks struck a deal last year to offer special access to Apple's iTunes digital music through the wireless network at more than 600 locations, with more expected to follow.

Starbucks also says it will turn over management control of Hear Music, its in-house record label, to its partner in that venture, the Concord Music Group. It is not clear whether the reorganization will alter the style or number of music releases carried on the shelves of Starbucks, which runs more than 7,000 shops in North America.

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