• The New York Post, Monday, March 12, 2007 3:30 PM

Starbucks could announce the formation of a new record label--with its first release a new effort by Paul McCartney--as early as this week. Sir Paul not only fits with the Starbucks demographic, but also is a free agent not signed to any label, sources say.

Unlike its Hear Music operation, which releases the Artists Choice compilation series that features musicians such as Sheryl Crow or The Rolling Stones selecting songs that influenced them, Starbucks Records is expected to sign, record and produce its own artists. It might take on a partner in the venture.

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

A spokesman for McCartney could not be reached; Starbucks says it has "no announcement regarding any new partnership at this time."

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