Starbucks is not just offering its customers free wi-fi on the hazy notion that if they spend more time surfing the Web they will drink more coffee. No, the ubiquitous coffee shop retailer has plans to debut the second piece to its digital strategy this fall, which offers a more clear monetization path for it and its partners.
Called the Digital Network, Starbucks intends to offer exclusive and premium content from such providers as Apple, the New York Times, the Wall Street Journal and health publisher Rodale.
Upselling to Customers
It is not necessarily a slam dunk for Starbucks. The company, after all, has several failed Internet initiatives to its credit already. However, an interview Starbucks' Vice President of Digital Ventures Adam Brotman gave to Mashable describes a new twist: it will upsell to network users. Also, there will be a revenue share between the coffee retailer and its content providers should customers go on to purchase while browsing. "We know that people would pay us for this opportunity. But instead of asking them to pay us, we thought, 'Let's aggregate and compile the best content that [Starbucks customers] can't get any where else,'" Brotman says, via Mashable.
5 Categories
According to Brotman, the network will have localized five channels with curated content in the News, Entertainment, Wellness, Business & Careers and My Neighborhood categories. In the News channel, customers will get access to the paid versions of the Wall Street Journal, USA Today and The New York Times. In the entertainment category, Starbucks will offer free Apple iTunes downloads and free access to Nickelodeon. Rodale will curate the wellness categories, with content tailored to Starbucks customers. The Business & Career channel will be Yahoo's domain.
The partners, at least Yahoo, are investing resources in the endeavor. Business Insider spotted a job posting from Yahoo looking for a web producer to manage content specifically for Starbucks wi-fi users.