Free Wi-Fi at Starbucks starts today
Posted
Jun 03 2008, 02:18 PM
by
Kim Peterson
Rating:
Starbucks has finally called off the T-Mobile hounds and now offers two hours of free Wi-Fi a day to customers. Well, it's not completely free, but it's close. Here's how to get it:
First, spend at least $5 on a reloadable Starbucks card, which you can get in stores. Then, go online and register for Starbucks' rewards card program. Then create an AT&T Wi-Fi account. You have to agree to let AT&T send you four spam "special offer" e-mails a year. You also have to use the Starbucks card once a month, which means you have to buy something at Starbucks once a month. Sounds like a bit of work, doesn't it? Starbucks shares are down 2% today to $17.57.
Why the sudden burst of generosity? Starbucks is in trouble, and is trying to keep people coming to its stores even as an economic slowdown takes the sheen off a $4 latte. And the Starbucks card is a cash cow, with $1 billion loaded on to it last year, according to USA Today. Not every dollar put on those cards is spent, which equals free money for Starbucks.
Free Wi-Fi might up the number of people parked at Starbucks, staring blankly into their laptop screens. But Starbucks thinks the traffic and revenue potential is worth it.
Is Starbucks' Wi-Fi strategy going to work? Will people jump through those hoops for free Wi-Fi, giving Starbucks more money in the process? Let me know in the comments.
Update: The Javamancy blog reports that Starbucks' servers are swamped today. "Lots of people (myself included) are experiencing authentication failures because the login servers are unable to keep up with the traffic. The presentation of this is: invalid username and/or password. Thus, the literally overwhelming response to the deal announcement!"
Related reading:
A plan to rescue Starbucks
Starbucks dumps T-Mobile for AT&T Wi-Fi
Why Wall Street hates Starbucks
Something stinks at Starbucks
Will Starbucks stock stop falling now?
