Spotify and Starbucks have announced a mutually beneficial partnership in which Spotify will become the official music partner of Starbucks and together, they'll create what's being called the first-of-its-kind music ecosystem.
The program brings something to the table for virtually everyone involved. For starters, all 150,000 Starbucks retail employees will receive a complementary Spotify Premium subscription. Along with Starbucks' 10 million loyalty program members, they'll be able to influence in-store playlists which will be made available on Spotify via the Starbucks Mobile App.
Starbucks for the first time is opening its loyalty program to a third party. As such, Spotify users will have the opportunity to earn points through the program that can be redeemed for free drinks at the popular coffee shop. Specifics regarding the loyalty program and how the in-store music influencing will play out weren't revealed in a press release on the matter.
Starbucks President and COO Kevin Johnson said they 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 his company would partner with Spotify in offering its customers a new way to engage with their favorite music.
Customer perks aside, the partnership is a big deal for both entities as they'll be promoting each other's brand in the process. Starbucks said it would promote Spotify Premium in participating retail stores while Spotify will have a dedicated section in its app for Starbucks playlists.
The fruits of the partnership will be implemented through a phased rollout that'll begin this fall starting with the 7,000 company-owned locations in the US followed thereafter in Canada and the United Kingdom.