Starbucks Moves In on Movies
Starbucks
(SBUX) - Get Starbucks Corporation Report
has made another leap into its role as a marketing powerhouse for the entertainment industry.
The java giant said Thursday that it is partnering with film studio
Lions Gate Entertainment
(LGF)
to jointly market and distribute the upcoming film
Akeelah and the Bee
. This marks Starbucks' first foray into the film business, but the company has already proved its mettle as a marketing force in the music industry by selling exclusive albums from the likes of rock legend Bob Dylan in its chain of 5,000 coffee shops in the U.S.
"While we are a coffee company at heart, Starbucks provides much more than the best cup of coffee -- we offer a community gathering place where people come together to connect and discover new things," said Howard Schultz, Starbucks' chairman, in a statement. "We are always looking for innovative ways to surprise and delight our customers, which is why we are so pleased to be working with Lions Gate on
Akeelah and the Bee
as the first film to introduce to our customers."
The movie is described as an "inspirational" film about an 11-year-old girl from the inner city of South Los Angeles who advances to the National Spelling Bee. Starbucks plans to host movie screenings and in-store promotions leading up to
Akeelah's
April 28 release date. Also, its stores will carry the
TheStreet Recommends
Akeelah and the Bee
soundtrack and DVD when they become available this year. The company didn't disclose financial terms of the deal.
While it's hard to quantify the value of Starbucks' entertainment activities for investors, its strategy is increasingly reminiscent of
McDonald's
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early partnerships with
Disney
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, efforts that planted both brands in the minds of a generation of children.
Starbucks, on the other hand, targets baby boomers, a large and wealthy crowd that is facing retirement, making it a coveted demographic for investment strategists. In addition to Dylan, the company has signed deals with Ray Charles, Alanis Morissette and The Rolling Stones, among others.
Last summer,
Wal-Mart
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followed Starbucks' lead, signing an exclusive deal for an album by country music star Garth Brooks.
Shares of Starbucks were recently down 5 cents, or 0.2%, to $31.07. Lions Gate shares were up 6 cents, or 0.7%, to $8.60.
