Starbucks Makes Music Deal With Spotify
May 19, 2015 at 3:57 AM (PT)
STARBUCKS COFFEE has inked a letter of intent with SPOTIFY for a multi-year deal to offer STARBUCKS music through SPOTIFY to the 10 million My STARBUCKS Rewards loyalty program users.
The deal, which follows STARBUCKS' exit from its long-standing CD-selling position, will give My STARBUCKS Rewards members "unique access" to music and the ability to earn "Stars" points for the program through SPOTIFY. The program will roll out in the FALL at STARBUCKS in the U.S., followed by CANADA and the U.K., and will include promotion of SPOTIFY Premium in the stores; Employees will be the first to get SPOTIFY Premium subscriptions, and will be able to help influence the in-store playlists that will then be accessible on SPOTIFY through the STARBUCKS mobile app.
“For over forty years, music has played a vital role in STARBUCKS' Third Place experience – inspiring our partners and customers in unexpected ways that have helped to shape the global pop culture. And we are delighted and honored to bring SPOTIFY directly to our customers,” said STARBUCKS Chairman/CEO HOWARD SCHULTZ. “Throughout its history, STARBUCKS has worked closely with the music industry, offering a variety of artists a platform for their work. By connecting SPOTIFY’s world-class streaming platform into our world-class store and digital ecosystem, we are reinventing the way our millions of global customers discover music.”
“STARBUCKS has a rich music heritage and customers who are passionate music fans which makes us incredibly proud to be their music partner,” said SPOTIFY CEO DANIEL EK. “SPOTIFY has powered more than 25 Billion hours of listening around the world so far, and we’re looking forward to creating unique in-store music experiences while also making more than 20 years of popular STARBUCKS music available to both Starbucks customers and SPOTIFY’s 60 Million global music fans.”
“We plan on building one of the most robust digital ecosystems of any retailer in the world. Given the evolution of the music industry and the proliferation of streaming technology, it was natural that we would partner with SPOTIFY in offering our customers a new way to engage with their favorite music,” added STARBUCKS President/COO KEVIN JOHNSON. “Starbucks ability to innovate with partners such as SPOTIFY, creating new ways and platforms to engage with our customers, will afford us unprecedented interconnectivity across all of our capabilities, and provide new access points for SPOTIFY as they continue to grow globally.”