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11/21/2024 11:53:48 pm

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Spotify, Starbucks Signs Multi-year Music Deal Partnership Involving Subscription Services

Starbucks

(Photo : Reuters) Starbucks and Spotify have recently signed a multi-year music agreement.

Spotify and Starbucks have recently agreed to a music deal that will add subscription services to Starbucks stores. Its patrons can also get free coffee drinks as a reward for subscribing to certain Spotify services.

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The music deal will connect the 7,000 Strabucks outlets located in the United States with the 60 million Spotify users.  Both companies term their partnership as a "first of its kind music ecosystem".

The music agreement will give Spotify access to the Starbucks "partners" who will then use it to choose the songs that will be played in that particular store's in-house playlist. In essence, the baristas will also assume the role of store disk jockeys while Spotify users, who are also taking their coffee in that store, will be granted access to the playlist through an app.

Aside from favorable media exposure, both company will gain something from this deal as this will be the first time that Starbucks will grant third-party access to its loyalty program. Subscribers of Spotify's premium serve will be given Starbucks "Stars as Currency"; however, this part of the agreement has yet to be specified by the new partners. For instance, how long will you have to be a paying Spotify subscriber in order to get the Starbucks freebies?

The music partnership agreement will first be implanted in the United States this fall, and later on, the new services will be made available in Canada and subsequently to the United Kingdom. 

Starbucks discontinued its CD sales services in their stores in the early part of 2015. In a Billboard interview, Starbucks assured its customers that music is an integral part of their coffee shop experience but the company is seeking news to upgrade the way it delivers music to its customers. The new agreement clearly indicates that Spotify will play a huge part in that endeavor.   

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