Starbucks Corporation (NASDAQ:SBUX) announced that it is making plans to collaborate with Spotify in a venture to introduce its music services to all of Starbucks’ stores this summer.
The online music service will introduce its playlists to Starbucks as part of a strategy to add value to the business and make it more unique from its competitors. The venture is also a great opportunity for Spotify. It is a chance to boost revenues as well as a new avenue for the online streaming service to market itself.
The deal was received with a lot of excitement by Starbucks employees. This is because the terms of the deal dictate that all the workers will get premium Spotify accounts. Additionally the service will extend to the company’s reward system.
Starbucks’ reward system will allow its customers and employees to influence the music programming provided they are signed into the music service. Starbucks also announced that the members will also get to earn points while using Spotify’s service.
The partnership will initially introduce the service to 7000 Starbucks locations as part of the pilot Phase before introducing it to the other locations that are over 150,000 in total. Analysts suggest that Spotify’s promotion by Starbucks should not be underestimated. The company has previously exhibited its prowess when it comes to influencing business and facilitating the success of artists like Alanis Morissette.
Starbucks has been involved with other similar partnerships in the past such as the long lasting partnership with Apple Inc. (NASDAQ:AAPL) which promoted iTunes music. The partnership is an added benefit to usher in the New York Media event that the company will hold on Wednesday.
There are rumors that the company will introduce other additional features to its services. Spotify has been making calculative decisions about its future. The new venture its part of its enhanced performance strategy aimed at pushing the online streaming service to new heights. The future undoubtedly looks brighter as the company plans to usher in more traffic and more subscriptions.
