Starbucks launches its digital network

The free in-store venture makes news, entertainment and more available only to customers.

October 27, 2010 at 7:02PM
In this screen-shot provided by Starbucks Corp., the website for Starbuck's Digital Network is displayed on an Apple iPad.
In this screen-shot provided by Starbucks Corp., the website for Starbuck's Digital Network is displayed on an Apple iPad. (Associated Press/The Minnesota Star Tribune)

How about a free digital magazine, video or newspaper while you slurp that latte?

They're being given away by Starbucks on an ambitious new digital media network launched recently in the company's stores.

The free Starbucks Digital Network includes premium news, entertainment and health content that's viewable only in the stores on phones, computers and tablet devices. No registration is required, unless customers want to log in to their Starbucks account.

It's a complete refresh of the Starbucks' in-store digital offering, which has evolved in fits and starts over the past decade as the company experimented with partnerships with Apple, kiosks and phone companies.

"There is a pull-through of that here, but the rest of it is really new, an exciting new way that we can enhance the customer experience and engage with customers," said Adam Brotman, vice president of Starbucks Digital Ventures.

The network will immediately become a major digital property, facing tens of millions of customers every month. Last month, Starbucks saw more than 30 million users logging into store networks, where Wi-Fi has been free since July and where the "SDN" will be the initial landing page.

Yahoo built the platform for Starbucks and is powering the service. It's a flexible design that can rotate and add new content and applications. The network is largely free of ads. Starbucks is hoping to make money from the network by sharing revenue on content sold through the network, such as iTunes music and newspaper subscriptions.

Content partners are also expected to provide something special, such as free access to premium content or exclusive previews. That will enhance the customer experience in Starbucks stores and potentially draw more customers, Brotman said.

It's not just an aggregation of Web content, he said.

"This is something where we are specifically hand-picking great partners that we feel our customers will be interested in being exposed to ... getting something from those partners that they can't get anywhere else or would otherwise have to pay for," Brotman said.

News content includes access to premium content from the New York Times, the Wall Street Journal and USA Today. Magazine publisher Rodale is filling out a "wellness" channel with content from publications such as Men's Health, Women's Health, Runner's World, Bicycling and Prevention.

Apple is prominent in the entertainment channel, which has an iTunes store featuring Starbucks' "pick of the week." The channel also provides free access to books through the Bookish Reading Club service.

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BRIER DUDLEY, Seattle Times