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XM, Starbucks in Marketing Deal

The companies seek to sell to each other's customers.

XM Satellite Radio


struck an alliance with


(SBUX) - Get Starbucks Corporation Report

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aimed at helping the companies sell to each other's customers.

The companies said the exclusive, multiyear deal means that music programming from Hear Music, the voice of music at Starbucks, will debut this fall on XM Radio. The channel will be known as the Starbucks Hear Music channel. Then, beginning in 2005, Hear Music programming will be played in more than 4,000 Starbucks locations nationwide.

Earlier this year, Starbucks opened the first Hear Music Coffeehouse in Santa Monica, Calif., giving customers the opportunity to create personalized CDs in about the time it takes to order a latte. Later this fall, Starbucks also plans to roll out a CD burning service to select Starbucks company-operated locations.

"XM's presence at Starbucks locations will greatly accelerate awareness of our popular satellite radio service," said XM chief Hugh Panero. "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."

On Tuesday, XM rose 32 cents to $27.15 and Starbucks was flat at $46.47.