Starbucks is planning to launch its own record label as soon as this week. Starbucks is also close to a deal for the next album from former Beatle Paul McCartney to be its first release, according to sources familiar with the plans. Paul McCartney is a free agent not signed to any label, sources said.

Starbucks Records is expected sign, record and produce its own artists rather than licensing songs from other labels.

Up until now, Starbucks has only distributed music though its retail coffee shops. But it is believed that Starbucks Records will seek to secure distribution for its releases in other retail outlets.

Also, Starbucks has enough licensing deals in place with major and independent record labels to build its own digital-music store a la Apple’s iTunes, or it could bring in a partner to help build the digital infrastructure.

There have been talks about putting kiosks in its shops so that customers can shop for music and create their own compilations while waiting for their $5 cup of joe.

Who would ever thought 10 YEARS AGO that a coffee franchise would be signing a BEATLE? Lets look at the starbucks facts. The caffein pusher has built coffeehouses all over the world, 7,102 company-operated outlets worldwide: 5,668 of them in the United States. Now that is a RETAIL outlet. It beats FYE. Starbucks has the demographic and the presence. Now thats a solution.