Paul McCartney and Starbucks made a big splash yesterday that ought to have some record label executives more skittish than they already are. Starbucks has signed McCartney as the first act on their own "Hear Music" record label. For McCartney, the record will be his first record of completely new material in almost two years. Not a bad way to take the next logical step in their move into entertainment.

Starbucks isn't going into the record biz blindly. They've partnered with Concord Music Group who have some significant experience in putting out records. But, Starbucks probably didn't need the help given they've got what up until a few years ago something only the major labels could deliver: a large scale distribution system. With record stores withering on the vine, Starbucks emerged as a major player the last few years for brick and mortar distribution. It makes perfect sense to stock the shelves with some of their own product.

What's next Wal-Mart records? Borders? If they do it, expect some major label heads to start jumping out of buildings. Don't be surprised if someone with half a brain at one of these big labels approaches Borders, Barnes & Noble et al with some partnership offerings. If people at those outlets have half a brain they'll realize they don't need the help and can simply hire a few key people to get in the game.

Labels: Paul McCartney