Starbucks is now shifting away from its record label joint venture, part of a larger entertainment restructuring. The coffeemaker is handing day-to-day control of the Hear Music label to partner Concord Music Group, according to details surfacing Thursday. Entertainment group president Ken Lombard is also departing, a move that follows weak per-store CD sales and accusations of overly mainstream title selections.
Chief technology officer Chris Bruzzo will take his place, and oversee strategies related to music, movies, books, and other entertainment areas. That places things in flux, though relationships with both Apple and William Morris Agency appear intact.
Starbucks has allied with Apple on a number initiatives, including gratis WiFi for iPhone and iPod touch users, and promotional iTunes download cards.
The changes come alongside a more difficult period for Starbucks. The company is being adversely affected by a worsening economy, a backdrop that is tightening purses and lowering sales of high-priced coffee drinks. "As part of our ongoing transformation, we are committed to examining all aspects of our business that are not directly related to our core," Starbucks chief executive Howard Schultz explained.

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