Reuters

(Reuters)

Starbucks Teams Up With Spotify For In-Store Music, Loyalty Program

Reuters

Starbucks is partnering with Spotify to bring the music service's playlists to all of its U.S. retail locations this fall, the two companies announced Monday afternoon.

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All 150,000 U.S.-based Starbucks retail employees will receive a Spotify Premium account as part of the partnership, and the music service will also plug into the Starbucks rewards program.

Starbucks employees, as well as customers who have signed up for the coffee chain's rewards program, will be able to influence in-store music programming, according to the announcement. Starbucks rewards members will also have the opportunity to earn rewards points while using Spotify.

Starbucks will initially bring the partnership to its 7,000 company-owned stores in the U.S., but plans to eventually expand to Canada and the U.K. as well.

The Seattle-based coffee chain will also promote Spotify's premium service in stores. The impact of that promotion should not be underestimated: Starbucks has long been a major force in the music business, selling millions of exclusive albums for artists such as Alanis Morissette.

The company also had a long-standing partnership with Apple to promote iTunes Music and app downloads in stores but stopped giving out physical codes for iTunes downloads two years ago.

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The Starbucks partnership comes ahead of a New York media event Spotify has planned for Wednesday. The music service is reportedly looking to launch a new service tier or even reveal a long-rumored video service that day.

(By Janko Roettgers)