Starbucks Corp. is partnering with music-streaming service Spotify to create a “music ecosystem” that will allow coffeehouse guests to influence in-store playlists and earn rewards by streaming music, the company said Monday.
The Seattle-based operator said it has signed a letter of intent for a multi-year partnership that will link its 7,000 company-operated locations in the U.S. and 10 million My Starbucks Rewards loyalty members with Spotify’s more than 60 million global users.
“For over 40 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 Howard Schultz, Starbucks chairman and CEO. “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.”
The partnership will roll out in phases this fall in the U.S., and then later in Canada and the United Kingdom.
As part of the deal, Starbucks’ 150,000 U.S.-based employees will receive a Spotify Premium subscription, which will allow them to help shape in-store music programming. Their playlists will be accessible on Spotify through Starbucks’ mobile app, so customers can stream music from their own devices.
Starbucks’ loyalty members will have opportunities to earn “Stars as Currency” by subscribing to Spotify Premium, which reportedly costs about $9.99 per month, marking the first time the coffeehouse chain has allowed guests to earn rewards through an outside partner.
Starbucks coffeehouse locations will promote Spotify Premium in stores, and Spotify will dedicate a section to Starbucks playlists and its most popular music, which will be available to all Spotify users.
Kevin Johnson, Starbucks president and chief operating officer, said the partnership is part of a plan to build “one of the most robust digital ecosystems of any retailer in the world.”
Music has long been a part of Starbucks’ retail offerings, with original CDs selected by a dedicated entertainment team starting in 1994, including emerging artists like John Legend, Madeleine Peyroux and Fleet Foxes. The CDs were discontinued earlier this year.
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