Starbucks Partners With Spotify for Interconnected Loyalty Programs, In-Store Song Picks

[MacRumors]

Longtime iTunes partner Starbucks today announced a brand new music partnership with music streaming service Spotify. Starbucks members will have access to in-store music within the Starbucks app powered by Spotify, and Spotify users will have opportunities to gain Starbucks rewards points.

"We plan on building one of the most robust digital ecosystems of any retailer in the world. Given the evolution of the music industry and the proliferation of streaming technology, it was natural that we would partner with Spotify in offering our customers a new way to engage with their favorite music," added Kevin Johnson, president and coo of Starbucks.

The coffee company's 150,000 U.S.-based employees will receive a free Spotify Premium subscription and will be able to use Spotify to influence in-store playlists. Those playlists will then be available to stream within the Starbucks app. Spotify users will also be able to gain rewards points for the Starbucks app and will be able to listen to the in-store playlists within the Spotify apps.

It's unclear whether Starbucks will continue its music partnership with Apple's iTunes. The two companies first established a partnership in 2007, allowing iPod users to figure out what was playing in Starbucks stores. Later, the coffee company began giving away free iTunes songs, which can still be accessed within the Starbucks mobile app. In 2011, Starbucks and Apple extended their partnership to the App Store. More recently, the two companies began teaming up for (Product) Red iTunes / Starbucks gift card combinations.

The new partnership will roll out to the U.S. later this year, with Canada and the United Kingdom to follow thereafter.

Article Link: Starbucks Partners With Spotify for Interconnected Loyalty Programs, In-Store Song Picks

 

[irfan22]

Its crazy how much ground Apple's new streaming service will have to cover at WWDC. Spotify is such a force right now. Their partnership with Uber and now starbucks.

It's funny how much apple dropped the ball on streaming and its playing catchup. Did they real expect digital downloads to be the future?

Eager and waiting to see what they announce and how much better it can be compared to Rdio, Spotify, Google music.

Currently a google music subscriber at $8 so hard for me to justify leaving.

 

[Michael Scrip]

Spotify is such a force right now.

Are they really?

Spotify has 60 million users (including 15 million who pay for the service)

Yet there are potentially billions of people who listen to music.

Streaming is supposed to be the future... but it doesn't look like many people are doing it.

 

[Mjmar]

It has always been a sum of the little things - like Starbucks integration with iTunes - that has made the experience of owning an Apple product a joy. I fear that Apple is getting so big that collaborations like this are a thing of the past. For example, with Apple pay it seems that Apple is taking the "you will come to us" approach to integrating it into stores. Apple, please do not forget your roots - I would love to see more well thought out and well executed instances of merging technology and lifestyle.

 

[Fynd]

Its crazy how much ground Apple's new streaming service will have to cover at WWDC. Spotify is such a force right now. Their partnership with Uber and now starbucks.

It's funny how much apple dropped the ball on streaming and its playing catchup. Did they real expect digital downloads to be the future?

Eager and waiting to see what they announce and how much better it can be compared to Rdio, Spotify, Google music.

Currently a google music subscriber at $8 so hard for me to justify leaving.

Same boat here. It'll have to be pretty good for me to switch. It'll be easier if there's a family plan, though, as I could quickly justify paying ~$16 for myself and the girlfriend. I'm interested in Apple Watch and Car Play integration as well.

 

[irfan22]

Are they really?

Spotify has 60 million users (including 15 million who pay for the service)

Yet there are potentially billions of people who listen to music.

Streaming is supposed to be the future... but it doesn't look like many people are doing it.

That's a good point though i do believe there is a large portion of music listeners who are passive listeners. They are just fine with the radio. That's why pandora is still so popular. I dont see apple getting these customers.

Apple will have to poach spotify users

 

[cn1dlm]

I'm okay with the iTunes/Starbucks Partnership going away. I honestly can't think of a time when I actually enjoyed the little free iTunes songs or apps they provide and give away at Starbucks. Usually from some unknown artist or developer. After trying it, it would often delete it after upon discovering it was just bloatware or junk.

 

[citi]

It has always been a sum of the little things - like Starbucks integration with iTunes - that has made the experience of owning an Apple product a joy. I fear that Apple is getting so big that collaborations like this are a thing of the past. For example, with Apple pay it seems that Apple is taking the "you will come to us" approach to integrating it into stores. Apple, please do not forget your roots - I would love to see more well thought out and well executed instances of merging technology and lifestyle.

They went and signed a whole bunch of retailers, got all the credit card companies on board, including Amex. It's not there fault if a retail conglomerate has their own plans of cashing in on their customers. Nobody forced CVS or Walmart to pull NFC. That was there ace in whole. It works where ever nfc is, unless the retailer has their own agenda.

 

[Karma*Police]

Same boat here. It'll have to be pretty good for me to switch. It'll be easier if there's a family plan, though, as I could quickly justify paying ~$16 for myself and the girlfriend. I'm interested in Apple Watch and Car Play integration as well.

I'd imagine just being as good will get a lot of users to switch so long as there's superior integration with the Apple ecosystem which should be a given. I could be wrong, but that's all it would take for me to switch.

 

[Jimrod]

"A way to engage with their music"... No Starbucks, I don't engage with my music, I listen to it.

 

[alfonsog]

I've found a lot of the kids who work for me only use pandora and spotify if it's free otherwise they listen to terrestrial radio. Maybe Apple should just buy spotify? My sister listens to iHeart or Pandora or her DJ Friends' live streams. There isn't going to be another "revolution" in music like what iTunes did they need to expand on to other categories; they are just trying to maximize profit on their existing ones right now.

 

[garethpauljones]

It has always been a sum of the little things - like Starbucks integration with iTunes - that has made the experience of owning an Apple product a joy. I fear that Apple is getting so big that collaborations like this are a thing of the past. For example, with Apple pay it seems that Apple is taking the "you will come to us" approach to integrating it into stores. Apple, please do not forget your roots - I would love to see more well thought out and well executed instances of merging technology and lifestyle.

True. For me the little thing which would be a deal breaker would be the ability for Apple Music to connect to my Sonos wireless sound system. Spotify does this (as does just about every major streaming music service except iTunes Radio) and it is a dream to use but I more than expect that this will not be possible with Apple Music. I'll therefore continue to use Spotify otherwise I'll have a pretty expensive sound system that I won't be able to use conveniently with Apple Music.

 

[CFreymarc]

Now WiFi with overpriced, high fructose sugar!

 

[joemod]

So assuming that none of the 150,000 employees had a premium subscription and that Starbucks did not buy these subscriptions wholesale, Spotify will gain 1,500,000 $ per month. Is that amount that big? Is it accompanied by in store advertising?
Also employees are going to become some sort of radio producers by influencing the shop's playlist? How do they know that they are good at it?
I cannot see the business benefit of either of the two parties. Perhaps Starbucks is buying a license to play music in store. I admit I am not good yet in business.

 

[kaostheory777]

Its crazy how much ground Apple's new streaming service will have to cover at WWDC.

Apple has generally always "waited things out" before moving into a market. iPod, iPhone, SmartWatch etc. Why would streaming be any different? Let others make the mistakes and then come out with something awesome. I for one am excited as this may be the thing that gets me streaming over buying music.

That being said the wait it out policy doesn't always work, [ahem] Ping [ahem] but it usually seems to pay off for them.

 

[Mums]

When is Starbucks going to have its "Supersize Me" moment? Time for Morgan Spurlock to go up against Starbucks. Does anybody else think Starbucks STINKS of the foulest old coffee and vomitous dairy smells?

 

[Imory]

Are they really?

Spotify has 60 million users (including 15 million who pay for the service)

Yet there are potentially billions of people who listen to music.

Streaming is supposed to be the future... but it doesn't look like many people are doing it.

Well then the question really is, what is currently the dominating force of how we consume music? Through iTunes and people buying music? I definitely don't think that's the case at all. YouTube and other streaming services are taking a chunk of the market share and then you have those who simply pirate.

 

[Narrator Jack]

Streaming coffee, how did they do it?

 

[AlliFlowers]

I wonder how it will affect the few of us who are already premium Spotify subscribers, who also regularly use the Starbucks app/go to Starbucks.

Somehow I can't imagine anything from my playlists being played. That's ok with me. OTOH, I usually enjoy what's being played while sitting at Starbucks, and don't necessarily want to hear the favorite songs of the 15 year olds at the next table.

 

[whsbuss]

And in a few years Starbucks will partner with someone else...... show me the $$$

 

[rdlink]

...Does anybody else think Starbucks STINKS of the foulest old coffee and vomitous dairy smells?

No.

 

[macmanwa]

Spotify Desktop Needs Native AirPlay

The Spotify desktop app on Mac still doesn't have native AirPlay functionality yet. When I play from my desktop machine to my stereo equipment, none of the song/artist info is transmitted. Lots of great stuff about their service, but this has always bugged me.

 

[Mackinjosh]

Its crazy how much ground Apple's new streaming service will have to cover at WWDC. Spotify is such a force right now. Their partnership with Uber and now starbucks.

It's funny how much apple dropped the ball on streaming and its playing catchup. Did they real expect digital downloads to be the future?

Eager and waiting to see what they announce and how much better it can be compared to Rdio, Spotify, Google music.

Currently a google music subscriber at $8 so hard for me to justify leaving.

Spotify's partnership with Sony's Playstation 4 is huge as well. It's the only music provider on that console that can stream in the background as people play games. Huge coup for Spotify given the incredible number of consoles Sony has already sold and will continue to sell.

----------

Apple has generally always "waited things out" before moving into a market. iPod, iPhone, SmartWatch etc. Why would streaming be any different? Let others make the mistakes and then come out with something awesome. I for one am excited as this may be the thing that gets me streaming over buying music.

That being said the wait it out policy doesn't always work, [ahem] Ping [ahem] but it usually seems to pay off for them.

Yeah, this is dumb. Apple isn't at its best when it's entering markets late. Add in the fact that their services business have been pretty much trash, and you end up with a music service that's most likely going to be DOA.

 

[Bawstun]

Oh look, more encouraging news for Spotify. I'm gonna quote that thread someday where everyone laughed at me when I said Beats will fail, as will Apple's reinvented streaming radio service.

Spotify hit the ground running and hasn't stopped. Apple was just too late and won't admit defeat!

 

[BrentD]

So assuming that none of the 150,000 employees had a premium subscription and that Starbucks did not buy these subscriptions wholesale, Spotify will gain 1,500,000 $ per month. Is that amount that big? Is it accompanied by in store advertising?
Also employees are going to become some sort of radio producers by influencing the shop's playlist? How do they know that they are good at it?
I cannot see the business benefit of either of the two parties. Perhaps Starbucks is buying a license to play music in store. I admit I am not good yet in business.

Assuming that Starbucks is paying much, if anything, for this is your first mistake. There's a chance they're paying something for the privilege, but I can guarantee you it's nowhere near full price for those premium subscriptions. Heck, even I only have to pay $5 extra to add a family member to my premium account.