Starbucks Corp. said Thursday it will promote Lionsgate’s low-budget film ”Akeelah and the Bee” in its stores, a deal that is likely to be a marketing boon for the small studio and takes the coffee shop chain further into the entertainment arena.
Starbucks said it would promote the Lionsgate film about an inner city girl who strives to win a national spelling bee in exchange for an undisclosed share of all revenue from the film. “Akeelah” is set for release on April 28.
A Starbucks executive also said the company plans to add DVDs and books to the music CDs already sold at its coffee shops but will limit the number of music and movie titles to 20 at a time to avoid cluttering its stores.
The international coffee chain has parlayed successful sales of music compilation CDs into deals for exclusive content with major artists like Bob Dylan and Alanis Morissette.
It began shopping for a film to promote about a year ago, and plucked “Akeelah” out of a group of 12 finalists, Starbucks Entertainment President Ken Lombard said Thursday.
“Not only was (’Akeelah’) compelling and inspirational, it was very fitting with Starbucks from a brand perspective,” Lombard said. “Lionsgate was the right partner. They are very innovative. We were very impressed with the quality of films they select.”
Lionsgate, which spends $15 million to $20 million to market its films and even less to produce or acquire them, had recent box office hits with “Crash,” the “Saw” horror films and the just-released “Hostel.” “Akeelah” cost less than $10 million to make, a Lionsgate spokesman said.
“Crash” went on to earn $80 million in worldwide box office, and the two “Saw” films more than $220 million.
Lionsgate Chairman Michael Burns said the company expects the Starbucks promotion to extend the reach of the marketing campaign for “Akeelah” -- and hopefully its box office take.
“We would sure hope that it was giving us some sort of multiple of our expected current (print and advertising) spend,” Burns said.
The “Akeelah” promotion is set to appear in more than 8,000 U.S. and Canada Starbucks stores starting immediately. Customers will receive flash card-themed cup sleeves and will be offered an “Akeelah” trailer on the chain’s in-store Wi-Fi network.
Starbucks employees will be able to screen the movie before its release, and customers can get sneak previews.
Oppenheimer analyst Thomas Eagan said the promotion held much upside for Lionsgate -- limiting the studio’s expenses and risk on the film and “heightening the probability” that it will surpass $100 million in free cash flow for the fiscal year.
Sanders Morris Harris analyst David Miller said the film ”has to work on its own whether or not Starbucks promotes it. If the word-of-mouth is positive it will work no matter what Starbucks does.”