Welcome to the Starbucks Digital Network

Yesterday Starbucks launched its own digital network, available through its wi-fi, in select store locations.  As announced this past summer, Starbucks locations now offer free wi-fi in order to compete with other chains that have always offered free connection.  So any customer can walk into one of the 6,000 Starbucks locations nationwide and experience their new network.  The Starbucks Digital Network, which is partnered with Yahoo!, offers access to subscription editions of The Wall Street Journal, New York Times, and USA Today.  Visitors can also listen to music from Starbucks Entertainment, and access exclusive iTunes downloads.  In addition, visitors can browse an unlimited array of Zagat reviews.  Customers can even use the service to check-in through Foursquare and manage their Starbucks Rewards. 

According to an article in Direct Marketing News, Starbucks doesn't plan on offering up advertising deals for this network.  Their content carriers can carry their own advertisements, but the actual network won't carry any.  Starbucks has also kept the terms of their agreements with the content providers a secret.  Nevertheless, this new network is just a jumping off point for Starbucks.  Adam Brotman, the VP of Digital Ventures at Starbucks, has promised more premium content, more rewards and a more personalized experience in the near future.

Creating this branded network is a smart move by Starbucks.  It fits in well with its overall brand image, appeals to their key demographic, and shows their avid customers that they are listening to their requests.  Starbucks went from essentially charging customers to use their wi-fi network, to offering it for free, as well as offering access to free content, all within a matter of months.  The only thing we can't be sure of is how long this network will exist without carefully placed advertisements.  Starbucks is keeping its business deals with their content providers under wraps, but once they are no longer satisfied with these deals, it could only be a matter of time before ads creep into the network.  I hope for the customers' sake that Starbucks keeps this network fairly clean of cumbersome ads that will deter users altogether.