Starbucks to Become Significant Media Distribution Platform?
August 1, 2013
Google is partnering with Level 3 Communications to offer free Wi-Fi service at more than 7,000 Starbucks location in the U.S. The service is expected to be about 10 times faster than the T1 connections currently provided by AT&T (which had reportedly offered to upgrade its service). The new Wi-Fi will be available in some stores next week with a complete rollout scheduled within 18 months. In addition, the upgraded Starbucks Digital Network will offer new media distribution opportunities.
“Starbucks didn’t detail Google’s role, though it suggested Google could bring more to the table with media offerings like YouTube and Google Play,” reports The Wall Street Journal. “The two companies will ‘co-develop the next generation Starbucks Digital Network,’ Starbucks digital chief Adam Brotman said.”
The partnership is an extension of Google’s move into Internet infrastructure and will provide the company with new opportunities to sell advertising and pitch products. Google can also launch Wi-Fi networks in its Google Fiber markets by piggybacking on the wired network.
“When your local Starbucks Wi-Fi network goes Google, you’ll be able to surf the Web at speeds up to 10x faster than before,” explains the Google Blog. “If you’re in a Google Fiber city, we’re hoping to get you a connection that’s up to 100x faster.”
“Starbucks and Google will also co-develop a new Starbucks Digital Network, which currently provides access to news and entertainment from sources like the Wall Street Journal, Apple’s iTunes, USA Today, ESPN, Yahoo! Finance, Zagat, Marvel Digital Comics, Nick Jr. Boost, SnagFilms, Yahoo! entertainment and Starbucks’ own entertainment arm,” reports Variety.
“For Hollywood, Google’s partnership with Starbucks will clearly mean more eyeballs for its content and advertising, not only for entertainment offered up through Google’s various business but also through other platforms like Netflix, Hulu and iTunes given the faster Wi-Fi speeds to come.”
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