This appears to be a win-win for Starbucks and Spotify in the “big and important business” of music.
The music in our stores gave us license over the years to be in the physical CD business and as many of you know that turned into a very, big and important business for Starbucks.” “For many, many years, music has been a very significant part of the Starbucks experience. While yesterday’s public announcement made all kinds of claims about “third place” and the customer experience, Starbucks CEO Howard Schultz yesterday got to the heart of the matter in a conference call, saying:
The partnership comes just weeks after Starbucks stopped selling CDs at its registers. Spotify CEO Daniel Ek says the partnership will essentially make baristas the in-store DJs. and 10 million My Starbucks Rewards (MSR) loyalty members with Spotify’s more than 60 Million global users to offer what Starbucks is calling a “first-of-its-kind music ecosystem.” The program is expected to connect 7,000 Starbucks-operated stores in the U.S. Starbucks and Spotify are planning a multiyear partnership that will give Starbucks employees and rewards program customers access to in-store playlists.
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