Red Bull energy drink could be the latest beverage to enter into the music business if the rumor of Red Bull Records becomes a reality. Reportedly, Red Bull's music endeavors, which include building a new multi-million dollar recording studio in Santa Monica, CA, are all part of the company's plans to launch a branded record label by year's end.

"They want to at least put something out digitally, and maybe physically [under their own brand] by the end of the year," a source told the New York Post.

Red Bull's studio is being run by former Universal A&R man Greg Hammer, who's also handling marketing through his Grace Marketing company. The energy drink has been giving free studio time to a number of indie rock bands, and may be looking to sign three or four of them to the label.

"They see a wide-open lane for rock," one source, who has used Red Bull's studio, told the Post. "They are a lifestyle-based brand that does a lot with snowboarders, skaters, the young Hollywood set, so they think they could have success breaking rock bands."

The Post also says that part of the reason a firm launch date hasn't been set is because the company is still trying to work through the business model and wants to be cautious about its costs given the slow state of the economy. There also is a debate as to whether Red Bull would seek distribution through a major label or handle the distribution via in-store displays and kiosks, much like Starbucks does in its stores.