Content is Centerpiece of Free Wi-Fi at Starbucks

Over the years, one of Starbucks’ most perplexing decisions was its approach to offering free wi-fi.

The coffee giant continually made wi-fi access complicated and inefficient. Most recently, you could activate a Starbucks card…and set up a username/password…for two hours of free access. Or you could visit virtually any other coffee shop and connect to unlimited wi-fi before your first sip of caffeinated bliss. For me, the decision was easy – especially when it meant supporting my favorite locally-owned java joints.

Beginning July 1, Starbucks finally got it right: free unlimited wi-fi at all locations, without the silly card or restrictions.

At first glance, there’s nothing special about Starbucks’ decision, since free wi-fi is now a commodity. Beginning this fall, however, they’ll implement their strategy to differentiate their free wi-fi from others.

The Starbucks wi-fi vision: Lead with content.

Mashable recently detailed plans for the Starbucks Digital Network (SDN), which will feature five “channels” with exclusive content from leading providers. SDN offerings will include:

• Access to paid versions of the USA Today and The New York Times
• Free iTunes downloads
• Free access to Nickelodeon educational games
• Premium health and wellness content from Rodale
• Localized information and ratings

As you’d expect, Starbucks views SDN as a revenue-generator. The Mashable story notes that Starbucks will upsell SDN customers. And revenue share agreements are in place for purchases completed through the content providers.

Still, it’s noteworthy that Starbucks sees content as the gateway to lengthening customer visits and ultimately buying more stuff. From the Mashable story:

Content providers are giving away restricted access in the hopes of attracting new business, and Starbucks wins by having something completely unique and customers benefit from by getting something of value at no cost.

Launching a SDN-like service may seem beyond the reach of your organization. However, content can (and should) serve as a door-opener in your sales and marketing efforts.