Apple and Starbucks, sitting in a tree
The most surprising announcement to come out of this afternoon's press conference was Apple's partnership with Starbucks. The new iPods and WiFi iTunes store were always possibilities. The Starbucks deal was unexpected.My initial reaction was amusement: Well, that's a silly thing! But now I get it. They've turned something that costs Starbucks money into an opportunity for profit.
Consider music videos. Five years ago, there were pricey ads that consumers got for free and generated no income. Yes, you may argue that they influence the sale of albums and concert tickets, but in and of themselves, music videos weren't making money.
Now Apple sells videos in the iTunes store. People pay to watch the advertisements.
Retail chains pay a fee for the music they pipe into their stores. Just like the music videos, Apple has created a profit opportunity for Starbucks (and themselves, of course).
Still think it's silly? Imagine when ten retailers are on board. Or twenty. Or television networks. Grey's Anatomy ends with a description of the week's featured pop tune. Why not grab it then and there?
When this catches on, it will be big.
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The most surprising announcement to come out of this afternoon's press conference was Apple's partnership with Starbucks. The new iPods and...
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I was just watching the "You'll never know what part of the internet you'll need" iPhone commercial and saw the "stocks part of the internet on your iPhone" part; I now see why SBUX was part of the stocks part of the commercial with their synergistic approach to the coffehouse experience and the internet. I also see that HD, ADBE, NKE, GOOG, and EBAY are ticker symbols on there. ADBE sells products that help Apple (Photoshop, etc.), NKE has iPod integration, and GOOG is part of the package when it comes to iPhone's internet integration. How do HD and EBAY fit into Apple's current "synergistic" plans out there?
September 06 2007 at 11:04 PM Report abuse Permalink rate up rate down ReplyFor the benefit of readers, I've developed a new logo.
http://www.intercuts.com/weblog/2007/09/starple-or-appbucks.html
By the way, wordsmith's anagram server produces "paperback sluts" when you stick in Apple and Starbucks. Selling books next?
HC
So they only mentioned the music store. Does that mean the Wifi is not free for other uses, like web browsing?
September 06 2007 at 1:08 PM Report abuse Permalink rate up rate down ReplyStarbucks currently charges for Wi-Fi? I'm glad I don't drink coffee.
September 06 2007 at 10:02 AM Report abuse Permalink rate up rate down ReplyEven if you don't end up buying the tune, I can see it being a nice feature to be listening to a new song and like it enough to want to know who the artist is. Now imagine if the technology moves beyond just Starbucks stores, and you can id the song playing in any major establishment and buy it if you like it. That kind of instant feedback / sync is a major paradigm shift in music marketing. It's a little thing now, but could be the start of a whole new way of acquiring (and marketing) music.
September 06 2007 at 8:59 AM Report abuse Permalink rate up rate down ReplyExactly, this is why I think this was actually the biggest announcement at the press conference, even though it kind of came in below the radar. This is the beginning of a huge shift.
September 06 2007 at 4:47 AM Report abuse Permalink rate up rate down Reply@11 Amen.
September 05 2007 at 8:12 PM Report abuse Permalink rate up rate down ReplyI am hearing more and more that todays conference has revealed a "new" commercial mass marketing approach by Apple. I used to like them when they were pirates...now it appears that they are moving in the direction of Microsofty. I can't see myself needing to download a song in the instant I think of it in Starbucks. I can appreciate wifi though. And, I can appreciate the price drop of the iphone. Thats just neat.
Andrew Hamilton
Video Production Las Vegas
Hamilton International Productions
http://www.hiproductions.com
When this catches on, it will be big."Let's hope it doesn't catch on
then. Sure it's a great way for advertises and Apple to make money,
but that doesn't mean I want a ton of advert buttons on my gadgets.
Plus, the first thing I'll do is start looking/developing for a hack
to get rid of them!Maybe it's just me, but Apple doesn't have a clue
if they think I'd ever use this.
Starbucks charges for their wireless, unlike nearly every other business in our area. Which is why I rarely go there, but frequent the mom and pop's who know that nickle-and-diming-people to death isn't the way to do business.
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