Monday, March 15, 2004

StarBucks/Hear Music partners with Hewlett-Packard  

Tomorrow, a new digital download music service will be unveiled at a press conference at Hear Music Coffeehouse in Santa Monica, California, which is owned by Starbucks.

Using Hewlett-Packard (HPQ ) tablet computers, customers can preview and purchase more than 250,000 songs. The minimum purchase will be five songs for $6.99, while complete albums will sell for $12.95. Over the next couple years, Hewlett-Packard plans to furnish 2,500 stores with computers, CD burners and printers for album art.

In a Business Week article published last week, Starbucks Chairman Howard Schultz said, ""This is not a test. We're going for it.''

"There is no question in our minds that this is the future of music distribution,'' says Hal Gaba, who co-owns Concord Records with producer Norman Lear. "It's a significant enhancement of the iTunes experience.''

After the press conference, Rufus Wainwright and Sarah Harmer(Photo) will perform outside on the Third Street Promenade.

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