Bob Dylan in Exclusive CD Deal with Starbucks

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THIS STORY HAS BEEN FORMATTED FOR EASY PRINTING Bob Dylan in exclusive CD deal with Starbucks By Nichola Groom | June 28, 2005 LOS ANGELES (Reuters) - Counterculture legend Bob Dylan on Monday became the latest musician to sign up with Starbucks Corp. in an exclusive CD deal that follows the runaway success of a Ray Charles album sold by the coffee maker. "Dylan: Live at the Gaslight 1962," co-released with Sony BMG Custom Marketing Group, will hit Starbucks coffee shops Aug. 30. It features 10 previously unreleased tracks from performances at New York's Gaslight Cafe over four decades ago, including "A Hard Rains A-Gonna Fall" and "Don't Think Twice It's Alright." Starbucks is moving aggressively into the music scene by selling CDs consumers can't buy elsewhere. The company does not disclose how much CD sales add to profits. One analyst said the music business has been more helpful in driving customer traffic than contributing meaningfully to sales. "I wouldn't say music has been a big driver," JMP Securities analyst Kristine Koerber said. "They are still a coffee retailer, that's their primary focus." Starbucks will carry "Gaslight" exclusively for 18 months, its longest such agreement yet. The CD will cost $13.95 at Starbucks' 4,600 U.S. stores. Dissatisfaction with Top 40-oriented traditional music retailers, particularly among older consumers who are more likely to be Dylan fans, has allowed Starbucks' music business to flourish, company executives said. "That disenfranchised customer is very much a part of the Starbucks customer base," Ken Lombard, president of the chain's entertainment division, said in an interview. He added that the chain is uniquely placed to catch customer interest, as buying coffee at Starbucks has become a part of many consumers' daily routine. Starbucks' biggest music success has been the Grammy-winning Ray Charles CD "Genius Loves Company." Since its release last fall, Starbucks has sold more than 775,000 copies, accounting for 26 percent of its overall U.S. sales, the company said. That success has helped the chain win over other big name artists, such as Alanis Morissette and Joni Mitchell. "That success continues to position us for great projects like the Dylan project and others," Lombard said. It is not the first time Dylan, known for his politically and socially charged lyrics, has partnered with a major corporation to promote his music. Last year, an exclusive compilation CD of his work was sold at lingerie retailer Victoria's Secret, a unit of Limited Brands Inc. Dylan even appeared in one of the chain's television ads, prompting some critics to say he had sold out. The release of "Gaslight" coincides with the premiere of a documentary film about Dylan's life by director Martin Scorsese called "No Direction Home: Bob Dylan." The chain will also be selling the soundtrack to that film, though not exclusively. © Copyright 2005 The New York Times Company .

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