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by Mike Masnick


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Starbucks Forming Its Own Record Label

from the I'd-like-a-tall-iced-rock-song,-easy-on-the-bassline dept

Starbucks long ago started experimenting with becoming more of a lifestyle company than just a coffee shop. In fact, in the past, we've noted the company's success in selling albums from Ray Charles and Bob Dylan -- as well as promoting films. The company's forays into the entertainment world haven't been all great, however, as attempts at creating CD burning kiosks and in-store download kiosks haven't been nearly as successful. The latest plan, though, is that Starbucks wants to create its own record label, recording musicians and then selling the CDs not just in Starbucks, but at other retailers as well. It's an interesting strategy, but given how much the recording industry has struggled lately to embrace new business models, it's not going to make sense if Starbucks sets itself up as "yet another" record label. If it's really focused on using the music as part of a bundle of goods (such as selling coffee...) it actually could make quite a bit of sense. It really could be part of the recognition of what new business models digital content allows, where the music is financed because it helps sell something else. Hopefully Starbucks' execs recognize this.

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  1. Political Extremist Coffee by dorpus on Mar 13th, 2007 @ 4:15am

    Is it just me or has that chain gone increasingly political? The stores increasingly make a big deal out of grown by "small farmers". The local store now has books on Darfur next to the cash register, demanding that we buy it. I've stopped going.

    (reply to this comment) (link to this comment)

  2. by Anonymous Coward on Mar 13th, 2007 @ 4:30am

    No. It's right in line with the whole "embrace the world" mentality which the liberal left wants to share.

    http://www.upi.com/InternationalIntelligence/czech_pres_environmentalism_is_a_religion/20070309- 060020-3030r/

    (reply to this comment) (link to this comment)

  3. A strong DRM could really benefit Starbucks here by Shohat on Mar 13th, 2007 @ 4:49am

    Sell music cheaply , but make it play only when user is in the shop. Too bad that current DRM technology developers just fight among themselves instead of creating a strong unified standard, and putting all effor into it.

    (reply to this comment) (link to this comment)

  4. Re: by Enrico Suarve on Mar 13th, 2007 @ 5:02am

    Yeah - the bastards

    Looking to improve the lot of people outside your own neighbourhoods rather than continuing to allow your own corporations to tread all over them for the sake of money

    Gits - they should promote third world rape like everyone else and like it

    As for the president of the Czech republic - finally, someone with the balls to stand up and say that environmentalism is political, damn right it is, politics is about winning votes and you do that by giving your people what they want - who the hell wants that kind of decision making?. Dammit, the rest of the world should follow the model in the US and completely ignore their people in favour of what those in power want, bloody commie democracies

    Besides he's right - we don't need more expensive studies since there IS already enough data - we need people to do stuff instead of talking all the time - bloody talking all the time lefty liberals

    Thank god the republicans in the US stand for the people and say "enough is enough" we WILL do something about this and not just talk....we will reduce oil usage (domestic and foreign), we will introduce tough new laws to reduce energy wastage and by golly we will invest in renewables and green technology

    Thank god for right thinking republicans everywhere – the world is safe

    (reply to this comment) (link to this comment)

  5. this reminds me... by JeroenW on Mar 13th, 2007 @ 5:28am

    There's still no Starbucks in the netherlands. I wonder why.

    (reply to this comment) (link to this comment)

  6. Re: Political Extremist Coffee by jc on Mar 13th, 2007 @ 6:14am

    yeah....who would want to learn more about Darfur? It's just the greatest human rights catastrophe in this generation.

    (reply to this comment) (link to this comment)

  7. Globalism... by Rabid Wolverine on Mar 13th, 2007 @ 6:24am

    I say we cut down the rain forest, burn ALL of the oil, devestate the environment and spend all of the money.

    Why?

    Do you really think your'r kids are going to come and see you when you are in the nursing home?

    The time for revenge is now!

    (reply to this comment) (link to this comment)

  8. Re: Re: Political Extremist Coffee by dorpus on Mar 13th, 2007 @ 6:43am

    There are any number of catastrophes needing urgent attention. Why do I have to have a particular view imposed with my morning coffee? I'm not coughing up $4 for a partisan organization.

    (reply to this comment) (link to this comment)

  9. You forget... by Anonymous Coward on Mar 13th, 2007 @ 6:45am

    Starbuck's is basically the safe haven and home for loser poetry, novel, screenplay, and song writers who don't know where to go with their "artistic material", black clothes, thick-skulls, and box frame glasses.

    Starbucks figures, hey, these pukes are lost and desperate, so we could and should start a recruiting campaign in all of our stores! Picking up starving and wannabe "artists" from their locations and putting those "indie" bands into fruition with their super-record label.

    More reason for me to loathe Starbucks and their shell of a lifestyle.

    (reply to this comment) (link to this comment)

  10. I think they did it by John on Mar 13th, 2007 @ 6:48am

    In a very browser-and-search-unfriendly-flash-oriented site you can view the press release at HearMusic.com.

    (reply to this comment) (link to this comment)

  11. by Anonymous Coward on Mar 13th, 2007 @ 7:23am

    One more reason to skip Starbucks. This is evidence that they're making more money than they know what to do with. I stopped going because of long slow lines, flimsy paper cups and no place to park. Oh yeah and all the faggots in the way that order a small (aka "tall") coffee and slum there all day.

    (reply to this comment) (link to this comment)

  12. I disagree with Tech Dirt by Tommy 2face on Mar 13th, 2007 @ 7:49am

    Starbucks created a loyal following just as Apple has with their Mac’s or even NASCAR. There is great opportunity for substantial gains in the music market share IF a company understands the current market trend. When tapes were out they were selling for $12 to $16 dollars. When the compact disc was introduced the industry exploited the new technology and sold the same music for $20 - $25 dollars even though the new material was less expensive to reproduce. The bottom line people are sick of getting ripped off to listen to music. If Starbucks introduces their style of music into the industry with a cheaper retail price, and offer the same music in their coffee shops for download. They will create a revenue stream of return clients for their coffee products who purchase the product while downloading the music. They should even limit the download speed of the music to keep the clients in the store longer.

    If this is done correctly they could change the music industry for the better.

    (reply to this comment) (link to this comment)

  13. I could care less about their music by whargoul on Mar 13th, 2007 @ 8:56am

    I've see what they sell next to the cash registers and, aside from a couple of Beatles and Doors CDs, it's mostly crap. I'd like to see free wireless internet (even with a minimum purchase) without having to signup for a T-Mobile account.

    (reply to this comment) (link to this comment)

  14. by Javarod on Mar 13th, 2007 @ 11:21am

    Hmmm, I'm curious, is Starbucks Music going to be just another record label, or perhaps they'll try to reinvent the music industry. Lord knows the current model is broken, the studios get rich, and the artists hope to get lucky.

    (reply to this comment) (link to this comment)

  15. by antony on Mar 13th, 2007 @ 1:27pm

    are there ppl actually drinking this swill! i've been forced to down it twice and cannot taste any coffee...someone's making a motza out of the stuff and idiots drink it!

    (reply to this comment) (link to this comment)

  16. RE: Antony by whargoul on Mar 13th, 2007 @ 3:23pm

    I agree Antony, most of their stuff tastes like a burnt tire; but they do have a couple of drinks that aren't too bad.

    (reply to this comment) (link to this comment)

  17. Coffee by Charles Griswold on Mar 13th, 2007 @ 7:06pm

    Right now I'm drink coffee out of a cup that says "Friends Don't Let Friends Drink Starbucks". I got the coffee from a Heritage Coffee Company kiosk, and it's a fine cup of coffee.

    Before you ask, no I didn't buy the cup from Heritage. I got it from a coffee stand called Jitterbugs in Wrangell, Alaska.

    (reply to this comment) (link to this comment)

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