Paul McCartney just left Capitol Records to sign with SBUX's record label:
Financial and contractual details for the Hear Music deal weren't discussed by Starbucks, beyond the fact that Mr. McCartney's album will be the first released on the label created by Starbucks Entertainment and Concord Records. But the partnership officially marks the end of Mr. McCartney's four-plus-decades relationship with Capitol, a Concord Records spokesman said. Representatives for Mr. McCartney wouldn't comment.I understand that SBUX CEO Shultz wants to challenge the status quo about what people think a coffee company should be, but seriously. I mean, they're already in the specialty coffee/ready-to-drink/liqueur markets, which okay, fine, I can see the connection. But movies and record labels?
"How could a coffee company sign a Beatle?" asked an awed Mr. Schultz at the meeting, where he admitted to having butterflies in his stomach before meeting Mr. McCartney for the first time two weeks ago in New York. "I was nervous," he told the artist, who appeared at the Seattle event via live video feed from London.
Can you say brand dilution?
But I guess if Richard Branson can do it, SBUX can too.
And as far as Paul McCartney goes? He's gotta pay for that divorce somehow, I guess.
(Photo credit: Humphrey Nemar)