XM, Starbucks Enter Strategic Marketing Alliance

Looking to leverage the Starbucks’ brand, XM Satellite Radio [XMSR] entered into a strategic marketing alliance with Starbucks Coffee Co. [SBUX]. As part of the deal, XM subscribers will be able to listen to the Starbucks “Hear Music” channel in the fall and, beginning in 2005, patrons at more than 4,000 Starbucks locations nationwide will be able to hear channel broadcasts at Starbucks retail locations.

The cross-marketing effort could open the door to XM exposing a whole new segment of the population to its satellite radio service, given the popularity of Starbucks’ coffee. No details as to how XM will be able to market its service within the confines of the coffee shop were released, but one has to assume the XM name will get some exposure.