Starbucks Records?

So just gliding in on the tail-feathers of my last post about how the music industry is a 'declining empire,' is a story I found in USA Today reporting that Starbucks is on the cusp of launching its own record label. Um, ok.....

It is debatable whether this is a sound move for the monster coffee corporation or not, but I believe they're jumping onto a sinking ship while everyone else is scrambling for the life-boats....

*Open slot; insert 2 cents.*

************2007-03-15***********

A Dr. Confusion rebuttal:

Ah, but see. I think this the smart move and shows the necessity of working around the fractured system that's currently in place. I'm pretty sure that Starbucks records are ONLY going to be sold inside a starbucks - right there that eliminates the need for paying for end caps at a record store like EMI or sony do now, or working out deals with wal-mart AND ever independent record store in medium and large towns. Plus, they can distribute the new CDs on the same palates that they deliver the coffee and cups and junk - removing/absorbing lots of shipping costs.

And who cares about radio/payola to get radio airplay - if you play the record instore - you're probably targeting and HITTING more people than radio in some markets AND (watch me now) they've got disposable income a-plenty (they're already in the starbuck for their luxury item {coffee}) AND the unit to move is RIGHT THERE next to the register for the impulse buy. Game, Set and Match capitol records! And it is now in your face.

Plus, they just need to work up some TV spots to say "HEY! new Norah Jones starbucks special snoozy live performance, only at starbucks" to get folks jonesing for their coffee AND to pick up the cream of the lifestyle-music crop. It's all is the synergy of the coffee, the starbucks cafe "experience" (seriously - the Pottery Barn's inventory is just cribbed from any starbucks interior design) and now they're just providing the convenient at-home soundtrack to that "experience".

It's almost worked on me with that Dylan thing they had a couple years back.

Sounds like a pretty genius move for Starbucks and one more bell toll for the extortion racket that was the plastic disc manufacturing and distribution cartels. Over all, I think it's a good thing but i think that the heterogeneration of music and it's distribution is a good thing on the whole. We could write a book on that subject. Thanks for letting me step on your post!
Dr. Confusion

******* ...and later, the same day... *******

Dear Doc Confusion:

First, I'm so glad you did step on my post because I think you've made some awesome points. I still have some problems with this whole endeavor, however. Let's dive in and take a look....

First, Starbucks will not be selling their label's music exclusively in Starbucks stores. The USA Today article states that Starbucks' "Los Angeles-based Hear Music label will sign its own artists and sell records through Starbucks stores and other retailers." It goes on to quote Ken Lombard, president of Starbucks Entertainment who said, "We're not setting this up so that Starbucks stores would have any advantage over other retailers." This negates most of the advantages you've listed above I'm afraid, and turns the new Starbucks venture into just another record label.

I would be inclined to say, then, that Starbucks would do well to look at things from the perspective that you've just taken, except.... Well, there's something that bugged me from the start about this whole deal, but I couldn't put my finger on what my problems/concerns were until I read your addendum to my original post:

If, in fact, Starbucks was planning to distribute their label's music exclusively in Starbucks stores (which they aren't), why would any artist want to be on a label that would only sell their records at a Starbucks? The draw of the atmosphere and the loads of potential impulse buys would be great for the Starbucks company, but what artist would want their music delineated to an 'impulse buy?' Would 50-Cent have ever gone multi-platinum if his only venue was next to the register at Starbucks?

Not to mention the fact that the "luxury item," which is the coffee, that is drawing people in is substantially cheaper than a CD (which is the impulse item). Isn't the impulse item usually cheaper than what the customer originally came in to buy? I can understand if you're at a record store and go, "Hey, I was going to spend $15 on a CD, I don't mind dropping another $1 or $2 for this little peace-sign key chain with a skull in the middle." But, if you're at a coffee shop and are only there to spend maybe 3 or 4 bucks, you're not going to very nonchalantly decide to spend 3 to 5 times more (plus the price of the coffee) at the register than what you came in prepared to spend in the first place. And, that's if you only buy one CD. If, for example, you buy 2, you're already spending in the neighborhood of 10 times more than if you'd just bought your cup of coffee.

Plus, I can't see people lining up outside a coffee-shop to buy the new Norah Jones CD. But if they did, Starbucks (and people who like to go there for the coffee/atmosphere) would have a problem on their hands because Starbucks would have to totally rearrange all their stores to make room for the CDs and the CD shoppers, and Starbucks as we know it would become a retail store... bye bye atmosphere. And if, perhaps, you're thinking that it could turn into something as cool as the Starbucks/Barnes & Noble combo, think again. Why? Because at Barnes & Noble you can snatch up a copy of "Naked Lunch" and sit there reading it (for free) over an espresso.... Everybody wins. In contrast, I can walk into my local Starbucks right now, pick up the "John Lennon's Greatest Hits" CD from beside the register, sit down with it and my cup of coffee, but then what? All you can do with a CD (until you get it home, that is) is sit there and hold it, and what's the allure of that? It doesn't add to the experience at all.

Ok, so it seems that if we do write a book on the subject, this might be an entire chapter by itself! I realize I've been a bit long-winded here, but I'm excited by the discourse, to be honest. Holla back and let me know what you think- we've never done this kind of posting before, and I'm interested to see if it takes us anywhere weird.

P.S. After re-reading what you wrote above, I realize that we've both been really hurling rocks at what you termed "the plastic disc manufacturing and distribution cartels" recently. Rock on.

-Myku