With the evolution of technology, Amoeba Music, one of America’s most iconic music store chains, has been suffering a great loss. To save the ship from sailing, founders of Amoeba have decided to use marijuana to turn their fortunes around. The company has been facing financial trouble for a while and they have decided to leverage on marijuana legalization. For this reason, marijuana will be sold at the Berkeley location of Amoeba Music.
Amoeba was founded in Berkeley, California and now has three stores across the state. David Prinz started Amoeba Music in 1990 with Marc Weinstein. Prinz says that the store in Los Angeles alone bring in an annual revenue worth $20 million. The rest of the stores aren’t as successful as the one in Los Angeles. As a result of this, the decision to sell marijuana in the Berkeley store took place.
Fall of Amoeba Music
Amoeba Music focuses on selling and exchanging vinyl records, CDs, DVDs, etc. With the advent of digitization of music, things are rapidly changing. The preference for pirated music sites and legal music streaming sites like Spotify has increased. Nobody will take the trouble to visit a music store if the music is available at just the touch of a button. Moreover, a majority of the consumers of music are youngsters, and today’s youth prefers listening to music on their gadgets, instead of an outdated CD player. These factors combined have led to the decline of the economy in the music industry.
Revenues in Berkeley have suffered a sudden fall by 50 percent in the last decade.
Marijuana in music stores now
Amoeba Music has decided to convert its 3,000 square foot jam room into a marijuana dispensary. Here, the sale of marijuana, as well as THC-infused products will take place. The dispensary is an independent space and will have its own separate entrance. The marijuana business had started to show its significance in California four and a half years ago. This led to the idea of opening a medical marijuana dispensary in the Berkeley store. The founders had submitted an application for the license last fall. About $500,000 has been invested in total for the license. They received the approval a few days back and are hoping to open this dispensary by May 2017.
For this project, Prinz and Weinstein have partnered with successful advocate and marijuana entrepreneur, Debby Goldsberry. The dispensary will not grow its own marijuana but will purchase it from the local farmers of Northern California. Meanwhile, a huge number of farmers have shown interest in this project. This will enable the farmers to have a stable source of income for their cultivation. Prinz also hopes that this dispensary will once again attract the youth to Amoeba Music. Consequently, the revenues of this store will rise once again.