Starbucks partners with Yahoo! to create in-store digital network

Thursday, October 21, 2010

Starbucks recently partnered with Yahoo! in the US and launched what they are calling a unique digital network in their 6,800 store locations. They already offer free Wi-Fi, so according to Starbucks senior management, this would be the next step in enhancing the customers digital experience. Starbucks hand picked a selection of popular sites like The Weather Channel, Foursquare, LinkedIn and offers in-store access to the network from smart-phones, lap tops or tablets that are logged on to Starbucks Wi-Fi. Click here to get a screen-shot of what it will look like.

I’m really not sure about this one. Yahoo! knows how to develop digital platforms and bring content together. They have been doing it for years , so I see why Starbucks would want to work with them and get in to the ‘digital network’ game. Could be quite lucrative. The question remains as to whether or not the news and entertainment sites selected will appeal to Starbucks customers. They have such a wide demographic and so many different segments – can you really pick for them? It will all come down to the value proposition and whether customers want to use their network or navigate the web on their own when having a coffee in store. I like Starbucks, but do I really need them to aggregate the web for me? Providing free Wi-Fi access on it’s own should be good enough.

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