By: Nina Metz

April 27, 2006, Chicago Tribune

While waiting for that venti latte, few of us might be aware that Starbucks has an entertainment division. Those CDs for sale at the counter? That's the entertainment division.

Now it's branching out into film promotion with "Akeelah and the Bee."

In January, the coffee company struck a deal with Lionsgate to promote the movie in its retail stores, in exchange for a percentage of the film's net profits. The arrangement is unique because most in-store promotions are typically structured as pay-per-service: The studio pays a fee, and in exchange a fast food company plasters its stores and packaging with movie-related images and giveaways.

Starbucks has gone for a more low-key route, printing coffee sleeves with spelling words from the movie, posting giveaway flashcards and encouraging employees to see previews of the movie to better talk it up with customers. Additionally, the in-store Wi-Fi homepage includes a link that offers more information about the film.

There is some risk involved with the back-end financial model; plenty of decent films never see a profit. On the other hand, Starbucks doesn't seem worried.

Ken Lombard, president of the company's entertainment group, says Starbucks officials were careful about which film to back. Specifically, they looked for a "great film that we think our customers are going to like seeing and be inspired by."

Plus, "our customers would love to get a recommendation from us about a quality film." Considering Starbucks has an obvious financial interest in the movie's success, it remains to be seen how audiences respond to such an endorsement.

"It is a test case," says Tom Ortenberg, Lionsgate president of Theatrical Films. "There's a fierce brand loyalty with Starbucks customers, so this is sort of like a stamp of approval." In other words, if you like our coffee, you'll love our movie.

According to Alexander Chernev, associate professor of marketing at the Kellogg School of Management at Northwestern University, "Starbucks has done very well by selling premium coffee. This is just another way to brand themselves. And from Lionsgate's perspective, they're reaching high-quality people. This is the kind of promotion that could really help a film that otherwise might have low attendance in the first weeks."

People are very picky about their coffee shops, but Lombard says they haven't had any complaints so far. "Our customers are loving the dialogue it's creating."