Drink Coffee and Hear Music
In 2007, Hear Music, previously known as a catalogue company based out of Boston, became a record label under its parent company, Starbucks. With Concord Music Group as its distribution label, Hear Music has grown awareness through the signings of Paul McCartney, Joni Mitchell, and Carly Simon, to name a few. It’s most recent addition, Hilary Mcrae, a Berklee Alum, is Hear Music’s first emerging artist. Starbucks states that signing Hilary Mcrae was motivated by her combination of melodious songwriting as well as her commercial appeal. Hear Music wanted to capitalize on the success of its other CDs, including From The Coffeehouse, a compilation, and Hilary appeared as a smooth, sequential next step. Hear Music has plans to release records for eight other artists in 2008, but the deals are still in the works.
In April 2008, Starbucks announced the transfer of day to day management to the Concord Music Group, as well as a parting with Ken Lombard, former president of Starbucks Entertainment. The chief technology officer, Chris Bruzzo, was in turn promoted to senior vice president, and will take over all aspects of Starbucks Entertainment.
Starbucks has recently publicized its aim to restructure Starbucks Entertainment in an effort to focus on digitalizing the company, along with including book content. Howard Schultz, Starbucks chairman explains that ‘now is the appropriate time to restructure our entertainment business to better align our efforts with out overall business strategies(1). Keep an eye on this company because it is in the process of making many multi-media deals including contracts with Apple and AT&T, and will continue to expand and gather more recognition.
(1). Madway, Gabriel. Starbucks Restructuring Entertainment Business. Thomson Financial News, April 24, 2008. HYPERLINK “http://www.forbes.com/afxnewslimited/feeds/afx/2008/04/24/afx4931694.
