I don't like Starbucks Corporation (NASDAQ:SBUX). I've been to Starbucks stores several times with friends who insist on meeting there, but I've actually never bought anything there -- probably, at least in part, because I don't drink coffee. I also don't like the atmosphere. To me, there's something phony about an international chain that tries to cultivate this local cafe feel, complete with paintings by local artists on the walls. Then there's the fact that they sell Norah Jones CDs and other yuppie paraphernalia. Color me cynical, but I really just don't like Starbucks.
The company is now starting its own record label as an outgrowth of its Hear Music brand. The record company, a partnership with the renowned jazz label Concord Music Group, will feature jazz music. The company is not saying whether it has signed any artists yet, though the label is expected to focus on a mix of new and established artists.
While this may seem like a case of unnecessary diversification, I like the idea of a Starbucks record label. While it will probably remain a small enough portion of the company that it not to impact earnings in a meaningful way, Starbucks stores provide an inexpensive way for the company to market new artists. With vocalists in the jazz and classic pop style like Norah Jones and Diana Krall finding success, I wouldn't be surprised if the next popular songbird of jazz comes from the Starbucks label.










