Home > Uncategorized > Starbucks Digital Network…YAHOO!

Starbucks Digital Network…YAHOO!

In partnership with Yahoo!, Starbucks recently launched Starbucks Digital Network offering exclusive access to premium content that consumers would normally pay for, which can only be accessed through Starbucks free wifi. Consumers, for instance, could download some content for free from Apple iTunes. Other big-name content providers include Wall Street Journal, The New York Times, Nickelodeon and Zagat. Content is categorized by topic; News, Entertainment, Wellness, Business & Careers and My Neighborhood.



There’s no money changing hands between Starbucks and the content providers. Content providers are giving away restricted access in the hopes of attracting new business. So what does Starbucks gain from the network? According to the CEO Howard Schultz, the intention is to enhance the effect of Starbuchs being a “third place” between home and work. by offering specialized content that appeal to local customers is a way to further entice other consumers to stop in at Starbucks, since they are getting something of value at no cost. So Starbuck could attract consumers in that aren’t willing to buy Starbucks and are perfectly happy with McDonald’s or other local coffee shops.

Would the network really benefit Starbucks? Or would it just attract the wrong kind of consumers; those who want to take advantage with out purchasing anything? Could the network bother loyal consumers who prefer the “not-for-everyone” Starbucks?

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