Not long ago, international coffee chain Starbucks were the startling new face of the record industry having released a number of CDs including albums from Joni Mitchell, James Taylor and Carly Simon and having made a development deal with Hilary McRae.

Not long ago, international coffee chain Starbucks were the starling new face of the record industry having released a number of CDs including albums from Joni Mitchell, James Taylor and Carly Simon and having made a development deal with Hilary McRae. 

 

The coffee chain recognised that coffee drinking consumers might be persuaded to buy carefully selected and mainly classic artist CDs while getting their morning cappuccino, and therefore developed relatonships with a number of record labels regarding in-store sales including a number of exclusives such as Alanis Morissette. 

 

Starbucks stepped up their musical ambition last year by launching Hear Music as a fully fledged record label, and grabbed the headlines by reaching a deal with Paul McCartney and releasing his album 'Memory Almost Full'.

 

But the company has now announced it is downsizing its entertainment division, and is transferring its record label, Hear Music, over to its partner in the venture, US independent the Concord Music Group.