The ever-evolving music industry has taken another bemusing turn, with the news that caffeine dealer Starbucks has formed its own record label.
The development is part of a concerted push by the company to expand its entertainment-based operations. The record label will be called Hear Music, which is the label already affiliated with the compilation CDs sold at Starbucks stores.Starbucks will be partnering with Concord Music Group for the venture - the two companies have previously worked together on the Ray Charles compilation 'Genius Loves Company', which won eight Grammys and sold more than 5 million copies.
Sir Paul McCartney is already rumoured to be in negotiations with Hear Music. But the news was met with cynicism from many within the music industry. One unnamed music company executive told Reuters, "It'll be interesting when they realize it ain't easy putting out records."
The established music industry could, however, fear that a large, established company like Starbucks could hold enough power to invoke another small paradigm shift in the way music is sold. In a statement, Starbucks and Concord Music noted that the label would "advocate creative control for artists and encourages musicians to stretch and take risks."
