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Starbucks hopes free songs, e-books lure customers
EMILY FREDRIX - The Associated Press

05:04:24PM (ET) Wednesday,October 20,2010.

NEW YORK (AP) — Starbucks is adding a venti-sized dollop of free books, news and entertainment to its Internet offerings starting Wednesday.

The coffee chain's new digital network promises customers free e-books, movies and other exclusives, including free access to some paid Web sites such as The Wall Street Journal, is meant to get customers spending more on drinks and content they buy through the site.

The move comes as Starbucks faces steep competition from McDonald's Corp. and other fast-food chains pushing increasingly fancy coffee drinks. But it also offers Starbucks a chance to make money by selling songs, e-books and other material to customers who linger over its free Wi-Fi, which saw 30 million log-ins last month.

Starbucks Corp. started offering free wireless Internet access in July. The new network, a partnership with Yahoo, is the next step in its strategy.

Customers will see the network as soon as they connect to Starbucks' Internet on their smart phones, computer or tablets, such as the iPad. A welcome page allows customers to scroll through various sections including entertainment, wellness, business and careers, and "my neighborhood," where they can find community news, restaurant reviews and more.

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* Starbucks getting into the gadget business. *

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