Why Starbucks Succeeds With Music, Fails With Movies

What is it about Starbucks, and/or the company's marketing strategy, that allows it to be so successful with music and (thus far) such a failure with movies? Variety has an article on Starbucks' struggle in its movie partnerships but doesn't delve into the issue. (A proper look at the topic isn't going to come from trade publication like Variety. Maybe Malcolm Gladwell can pick up where Marc Graser left off.)

In case you didn't know, Starbucks has done very well with music. It sells select CDs in its stores, has its own channel on XM Satellite Radio, and it operates its own record label, Hear Music. In March of this year, Hear Music signed Paul McCartney after the singer was with Capitol Records for decades.

"Starbucks has long been considered a potential powerhouse for Hollywood, especially after helping launch music artists and assisting more familiar ones to sell CDs. But it hasn't fared as well on the film front."

Why is that? I think it's because music is an integral part of the Starbucks ambiance and consumer experience. Video and movies are not. There are certain types of music that pair well with comfortable decor and the smell of roasted coffee. Jazz. Laid back singer-songwriters. From Norah Jones to Madelaine Peyroux, Dave Matthews to Bryan Ferry.  What type of movie goes well with the Starbucks' ambiance?

"'With all of our entertainment options, we are careful to promote our products and projects in a tasteful manner and not to interfere with the coffeehouse experience,' said Ken Lombard, president of Starbucks Entertainment."

But how does a movie have anything to do with the coffeehouse experience? If a movie did have anything to do with the Starbucks' experience, it wouldn't be a childrens' movie. I'll admit that I don't drink coffee and have been in a Starbucks only a handful of times, but I walk by a Starbucks daily, and I've never seen a movie playing in one. I don't see movies, and I don't see children. I see a lot of adults who love coffee and music.

Music makes for good background entertainment. Movies not so much. They demand too much of your attention. I see people walking around with iPods. In supermarkets. On the subway. In the street. At the gym. How often are people watching movies on their iPods? Not very often. Video use on iPods is very low -- 2.2% of the time, according to a Nielsen study.