AS STARBUCKS CUSTOMERS KNOW, STARBUCKS HAS A RECORD LABEL; WHAT'S UP WITH STARBUCKS' HEARMUSIC LABEL, AND ITS OTHER ENTERTAINMENT IDEAS?

Starbucks Hear Music label is responsible for all the nicely packaged music that coffee-drinkers find on stands and shelves in Starbucks coffee outlets. As the hearmusic.com site says, Starbucks Hear Music is the "Sound of Starbucks."

The alternative record label, founded in 1990 and acquired by Starbucks in 1999 for $8 million, has found Grande success within the green and white of Starbucks. In February, the Joni Mitchell single "One Week Last Summer" from her Hear Music debut Shine, earned Mitchell the six Grammy of her career.

In addition, world music sensation Angelique Kidjo won her first Grammy in February at the 50th Anniversary Awards show, for her Razor & Tie/Starbucks Entertainment album DJIN DJIN. Also in February, among other new releases, Starbucks Entertainment and Concord Records co-released multi-platinum recording artist Kenny G's latest album, Rhythm and Romance.

The label, and other music business partnerships that Starbucks aggressively pursues, are all part of Starbucks' big-picture plan. "This is not a gimmick, and this is not an approach to take to sell more coffee," says Kenneth T. Lombard, president of Starbucks Entertainment, the unit overseeing the music efforts. "This is a firm commitment to take advantage of our unique platform to discover and acquire music."

Lombard is referring not only to the Hear Music label, but also to Starbucks' XM Satellite radio show, its 2007 partnership with Apple and iTunes, and its push in to music retailing where a Starbucks outlet is a record store first, and a coffeehouse second. Seattle, Austin, and Berkeley CA., already boast these Starbucks music retail outlets.

The exclusive partnership between Apple and Starbucks Entertainment, allows Starbucks customers to wirelessly browse, preview, buy and download music from the iTunes Wi-Fi Music Store at Starbucks. Both Starbucks and Apple feel this is a great opportunity, and are rapidly placing music kiosks in diverse Starbucks locations.

"We think this is very cool...and it is a great way for customers to discover new music." Apple CEO Steve Jobs explains. "Imagine walking in to a participating Starbucks, hearing a great song, and being able to instantly download it on to your iPod or iPhone."

The 2008 roll out of iTunes Wi-Fi Music Stores, with a debut last October in Seattle and New York, will include 350 Starbucks locations in the San Francisco Bay Area, 500 in Los Angeles, 300 in Chicago, and many other markets. The Apple/Starbucks partnership, Starbucks Coffee Chairman Howard Schultz says, is a uniques opportunity to "offer customers a world-class digital music experience."

Starbucks is doing much the same in book publishing and movies. To learn more go to (Hear Music | The Sound of Starbucks).