So says this story from the Statesman in Texas, citing that it has quietly pulled CD-burning kiosks out of most of its Austin and Seattle stores. It started with 45 in 2004, with plans to go nationwide, but has downscaled to five stores in each city. There has been some prior examples of Starbucks moving away from its CD-burning strategy and focusing on packaged CD retailing and through its Wi-Fi portal, so this may be a continuation of that.
In the remaining stores, the kiosks recently were upgraded with new software and a larger bank of more than 1 million songs. Starbucks chose the 10 stores based on the popularity of the kiosks.