New Record Label: Starbucks

New Record Label: Starbucks

Does Apple's iTunes hold the key to the future of music distribution? Or does Starbucks with its Hear Music burning stations? Jason Tan gave us three considerations: 1. Music from...

Guy Brighton
  • 11 october 2005

2. Record labels hate the blanket 99 cent per song pricing model of iTunes. They believe that they are getting short-changed so that Steve Jobs can sell more iPods. Starbucks, which now exclusively sells rare Bob Dylan songs and songs from its own signed artists, does not have to deal with this. Starbucks not only has more control over pricing, but with distribution as well. Pretty soon, smart record labels (i.e. the small ones) will realize this. Musicians will start seeing this too and will also build record labels based on the Starbucks model. Music will be price-segmented into premium designer music and deeply-discounted commodity pop music (Wal-Mart music store?).

Access this article for free
Fill in your email below and you'll gain access to this article while also receiving a number of membership features as part of a special 30-day trial.
*Already a member? Log in here

Learn About Our Membership Services

Need Research Help?
As a member you can ask us any research questions and get complimentary research assistance with a 4-day turnaround. Reports inclde stats, quotes, and best-inclass examples on research topics.
Remain Informed & Strategic
We publish several trends reports each month. By becoming a member you will have access to over 100 existing reports, plus a growing catalog of deep topical analysis and debrief-style reports so you always remain in the know.
See Trends Come To Life
Meet your peers and immerse yourself in monthly trend and innovation webinars and discounted conferences.
No search results found.