4 August 2004
XM, Starbucks In Music Marketing Deal
Posted by Zane under: News; Technology .
Satellite radio provider XM Satellite Radio on Tuesday said it will provide Starbucks Coffee Co.’s “Starbucks Hear Music” channel to its more than 2 million subscribers beginning this fall. XM said the move is part of a multi-year, exclusive marketing pact between the two companies. Currently, Starbucks sells about 100 CD compilations, spanning various genres, that it has created at its coffee shops. As part of the XM deal, the “Starbucks Hear Music” channel will feature music from these compilations as well as other sources.Also under the deal, the companies said Starbucks will play XM’s “Starbucks Hear Music” programing at 4,000 of its stores beginning in 2005.It was not immediately clear if the programing would be transmitted by XM or distributed through other means, according to a Starbucks spokeswoman.
In March, Starbucks unveiled a music initiative to open Starbucks music cafes, using Hewlett-Packard Co. technology to enable customers to make their own custom CDs as they sip coffee.
Starbucks launched the first music cafe at a former Hear Music store in Santa Monica, California, and announced plans to expand the service to 2,500 stores in two years.
Founded in 1990, Hear Music, which operates four music stores in Santa Monica, Palo Alto, Berkeley and Seattle, was acquired by Starbucks in 1999.
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