These types of synergies could foster a slew of similar combinations. This union says as much about coffee and music as it does about the future of co-branding digital entertainment. The “musical-ecosystem” initiatives will begin rollout this fall, starting with Starbucks' company-owned stores in the US before branching out to Canada and the United Kingdom. Even mega-platinum-star Taylor Swift, the most ardent Spotfiy critic (joined by Ne-Yo, Jay-Z and others later) has fond memories of the thrill she got when her Speak Now album hit Starbucks. Starbucks has championed rising artists such as John Legend, Madeleine Peyroux and Fleet Foxes, too.
Starbucks also engaged stars like Bob Dylan, Yo-Yo Ma the Rolling Stones and Ray Charles to select their favorite songs for the Artist Choice series. The program highlighted established stars such as the late John Lennon, Aretha Franklin and Bonnie Raitt. But it wasn’t until 1994 that its entertainment team began picking and showcasing original CDs (250 of them eventually) traversing genres and geographies. The musical core of Starbucks’ coffeehouse culture goes back more than 40 years. “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.” “Throughout its history, Starbucks has worked closely with the music industry, offering a variety of artists a platform for their work,” said Howard Schultz, chairman and CEO of Starbucks. In keeping with its pro-musician legacy, Starbucks stores will promote Spotify Premium, the paid part of Spotify. Starbucks has excelled at converting coffee-drinkers to broader consumers and artists have been grateful for Starbucks’ support for their work. Additionally, it also offers musicians an upside over the free and ‘freemium’ advertiser-based Spotify programs, plus a wider distribution platform for their music.
This is the unique kind of deal that delivers smiles on both sides. company-owned stores and 10 million MSR loyalty program members will join with Spotify’s 60 million users to form, what the two firms call, a “First-of-Its-Kind Music Ecosystem.” “Spotify has powered more than 25 billion hours of listening around the world so far,” said Daniel Ek, CEO of Spotify, “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.”
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