Is Starbucks the jolt that mobile content discovery needs?

A week ago in this space, I speculated on the retail brands most likely to someday enter the mobile app store thunderdome, and although my list didn't include Starbucks, it should have. After all, the coffeehouse kingpin long ago moved into the content business, marketing CDs produced by its own Hear Music label, giving away free iTunes downloads in partnership with Apple (NASDAQ:AAPL) and even introducing its own branded iPhone applications along the way. The oversight seems especially egregious in light of the new Starbucks Digital Network, an in-store multimedia platform going live this week in nearly 6,800 company-operated locations across the U.S. Optimized for all WiFi-enabled smartphones, tablets and laptop devices including the iPhone and iPad, the Starbucks Digital Network will offer free, handpicked content available exclusively within the confines of Starbucks stores, promising snackable entertainment and news experiences tailored for consumer visits spanning anywhere from a few minutes to an hour. Partners include Yahoo (which will host and manage the HTML5-based platform) as well as brands as diverse as The New York Times, Zagat and foursquare.

It's no surprise that Apple is a Starbucks Digital Network partner as well: The service's Entertainment channel (one of six different channels in all) boasts iTunes music and videos along with a digital version of the Starbucks/iTunes Pick of the Week download card program, which promotes up-and-coming recording artists. Starbucks' ongoing relationship with Apple basically guarantees the coffee chain isn't going to roll out a competing app store of its own, but that's beside the point--the Starbucks Digital Network could instead offer a solution to some of the content discovery and monetization challenges that continue to hinder the existing App Store experience, especially once the coffee giant delivers on its promise to incorporate new personalization tools and premium download options.  

It's easy to envision the Starbucks Digital Network someday complementing the App Store the same way it currently does iTunes--i.e., offering spotlighted, Apple-anointed iPhone and iPad applications for free or at a promotional discount. Much like the adult alternative pop that dominates Starbucks' digital download giveaways, these featured apps would expressly target the affluent, under-50 professionals that make up the bulk of the Starbucks consumer demographic; Starbucks Digital Network also could recommend applications based on a customer's download history, location or preferences, or even the types of information and entertainment content they seek out across the rest of the Starbucks media platform. In short, it's an opportunity to curate a mobile experience customized not just for the coffee chain as a whole, but also for each individual user.

But it's the in-store parameters of the Starbucks Digital Network that present the most innovative merchandising possibilities. Consider the example of a mobile game normally priced at $4.99 in the App Store--given consumers' decided preference for free applications, many iPhone owners might never even contemplate downloading a premium app, no how matter how engrossing it might be. But if Starbucks customers could sample that same paid title for free while sipping their pumpkin spice lattes, immersing themselves in the game's rich, multi-layered virtual world, there's a strong chance they'll be willing to fork over their hard-earned cash to continue playing once they exit the coffee shop and the trial ends. Sounds crazy? Well, it wasn't so long ago that a lot of folks contended no one in their right mind would pay five bucks for their morning cup of coffee. In fact, Starbucks' success proves consumers are willing to spend more money if the improved quality of the product justifies the cost. You just have to give them a taste of what they've been missing. -Jason