The Seattle based company, Starbucks, have decided to launch a record label called Starbucks Records. It’s not a coincidence as they have proven they can sell other’s music at their stores, and looking at their huge distribution chain (13,000 new stores just in last year!) it seems the new record label will be successful. I mean, they will sell lots of cd’s to happy coffee drinkers.
They will sign their own artists, in fact they are talking about Sir Paul McArtney’s new album to be released with Starbucks Records, and since they have their own stores to place ads and also to make people listen to them, sales are guaranteed. The idea according to the Chairman of the company has come because they were suffering a loss of authenticity… so now, they can say they are more different again.
Corporate Funded Music
Starbucks to Launch Record Label With Paul McCartney
Trend Themes
1. CD Label Partnerships - Opportunity for other corporations to partner with musicians and create their own record labels for targeted promotion and distribution.
2. Brand-driven Music Marketing - Increasing trend of brands using music as a marketing tool to enhance their brand identity and engage with their consumers.
3. Vertical Integration in Music Industry - More businesses exploring vertical integration by venturing into music production and distribution to expand their brand reach and revenue streams.
Industry Implications
1. Retail - Companies in the retail industry can follow Starbucks' lead and explore opportunities to launch their own record labels to diversify their products and engage with customers.
2. Food and Beverage - Food and beverage companies could consider incorporating music into their marketing strategies through record label partnerships to create unique brand experiences.
3. Hospitality - Hotels and resorts can disrupt the music industry by creating their own record labels to showcase exclusive artists and enhance guest experiences.