Starbucks is joining hands with Yahoo and Apple to develop an in-house digital network that will provide customers with exclusive free music, movies and e-books, in an attempt to draw more people to its outlets.
The new move is not just an attempt by the coffee giant to compete with rival chains like McDonald's that have started encroaching on Starbucks' territory, according to the Associated Press. It could also generate new streams of revenue for the company, as customers browse through and purchase digital content while being online at its coffee stores.
Starbucks started offering Wifi internet
for free at its outlets in July, getting 30 million log-ins last month.
The collaboration with Yahoo will allow Starbucks to launch an online
portal for people who login from its stores. A welcome tab will take customers to related content, including free music, movies and e-books. According
to the report, the free content will be available to only those who
sign up from Starbucks outlets and the company will get an undisclosed
percentage on every sale made through the service.
Starbucks and Yahoo created the network after observing customers' behavior. "Users across the Internet are moving more into this 'snackable behavior' to begin with", stated Burke Culligan, the vice president of Yahoo's product management.
Customers will also be able to download Starbucks' free "Pick of the Week" song from iTunes directly while being online at the outlet. Apple and Starbucks have
been working together for many years, partnering on the Starbucks iTunes Wifi music shop.
