In recent news Spotify has partnered up in a steamy business relationship with Starbucks. The deal makes Spotify the sole supplier of music to all 7,000 Starbuck stores. Baristas will be creating music playlists, using Spotify’s Premium membership in early fall. Starbucks reward members will have access to music on Spotify and have a huge influence on what is played in the stores. Reward members will also be able to use their star rewards as currency just like a virtual jukebox, for subscribing to Spotify’s Premium membership.
Spotify will truly benefit from this Starbucks partnership. Starbucks will promote Spotify’s Premium membership and have premium access to Starbucks’ 10 million reward members. Not only are Baristas getting their college tuition paid for, they are also getting a free Spotify Premium membership.
One may note this is the first deal that Starbucks has done with a third party. Maybe this is the reason for Starbucks loyalty among consumers. It seems as if Spotify cares about the loyalty consumers, but Spotify only cares about a revenue stream that turns a profit for their streaming service. Leeching onto Starbucks seems like a no-brainer. Spotify will try to entice Starbucks loyalty consumers to purchase the premium Spotify Membership. Starbucks should safe guard their loyal consumers and be weary of sharing them with Spotify. I honestly think it’s a big risk that Starbucks is taking. I honestly do not see this partnership going too far.
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