Starbucks in conjunction with Concord Music Group have formed a new record label, Hear Music. Both companies already have released recordings featuring Ray Charles' "Genius Loves Company" and Sergio Mandez' "Timeless." Starbucks and Concord will distribute the Hear Music recordings at local Starbucks stores, as well as traditional music channels.
They have not hired a Colonel Tom Parker-type consultant yet, but if you sing better than Elvis or Stevie Ray Vaughn, and know that your music is more Kona than breakfast blend, you can click on the press release URL below and have a go.
Starbucks trades on NASDAQ as SBUX
Why This Trend Is Growing
- Music Retail Evolution
- Starbucks as a new, unconventional player in the music industry implies a potential shift in how consumers purchase and consume music.
- Branded Entertainment
- The success of Starbucks’ record label further validates the viability of branded entertainment in industries beyond traditional sectors.
- Retail-music Market Convergence
- Starbucks’ entry into the music industry could lead to more collaborations and partnerships between retailers and music companies.
Industries Being Reshaped
- Music Industry
- The emergence of Starbucks’ Hear Music could disrupt the existing traditional players in the music industry.
- Retail Industry
- This new record label created by Starbucks is expected to bring in more foot traffic and sales to their stores, reinforcing the notion of retail destinations as entertainment venues.
- Entertainment Industry
- Starbucks’ move to diversify into branded entertainment could serve as an opportunity for other entertainment companies to explore adjacent industries.
