Post a Comment On: Frankly Speaking

In an an interesting move, Starbucks (sbux) is now getting into the business of promoting movies. Akeelah and the Bee is a new movie that is opening this Friday. SBUX is promoting the movie by including it on the 4 million sleeves that it hands out to its patrons daily.

SBUX is not new to the entertainment business. For years it has tried selling CD's in it's stores. I wouldn't call this a successful venture in any way. CD prices in SBUX stores range from $9.99-$19.99. And the artists that they offer are more familiar to SBUX's older customers SBUX also has wireless Web access in many of its stores, where consumers can log onto Itunes and purchase tracks starting at $.99.

Is the movie business a good idea? Frankly speaking, I'm not so sure. The SBUX brand is one of the most recognizable brands in the world. To start branching out and getting involved in businesses (i.e. marketing/advertising) that have nothing to do with your core competencies is always risky. If the movie does horribly at the box office, there's no doubt that the sbux brand will be affected. However, if it succeeds, it will be another reason why sbux will continue to be a solid investment.