XM, Starbucks Form Alliance

XM Satellite Radio, Inc. and the Starbucks Coffee Company have begun what they describe as “an exclusive, multi-year strategic marketing alliance.”
As part of the agreement, the “Starbucks Hear Music” channel, featuring music programming from Hear Music, the voice of music at Starbucks, will debut this fall on XM for its more than 2 million subscribers. Beginning in 2005, Starbucks customers will be able to listen to the “Starbucks Hear Music” channel programming and be exposed to XM in more than 4,000 U.S. Starbucks locations.
XM President/CEO Hugh Panero says the satcaster’s presence at Starbucks will “accelerate awareness” of the service. “The Starbucks customer and the XM customer share similar lifestyles and music passions, and it is only natural that they share a latte and listen to music together,” he stated.
Starbucks, in turn, is looking to build brand awareness of its music channel with the alliance. Later this fall, Starbucks plans to rollout a CD burning service to select Starbucks Company-operated locations.