McDonald's 1 Billion Song Promotion... A Go?
Starting at 38 minutes into the webcast, Mr. Bandier speaks of EMI's performance over this past year, and goes on to discuss the growth of legal music download services such as Apple's iTunes. On future performance, he notes:
- "... but there is real potential for the future especially when PepsiCola makes a commitment to giveaway up to 100 million downloads and Mcdonald's commits to 1 billion in download giveaways as part of a promotional campaign."
The New York Post first reported that McDonald's was close to announcing a 1 billion iTunes song giveaway. While McDonald's had no deal to announce at the time, we subsequently received confirmation that the deal was in the works.
While it is possible the comments may simply be reflective of the circulating rumors, it seems likely that EMI's CEO would be privy to such knowledge and that he would be unlikely to make comments at a financial conference based on unfounded rumors.
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:)
That's huge. I like this strategy though. Overwhelm and saturate the market, even at an initial loss, so that after these campaigns are done, iTunes will be synonymous with legal music downloading and the others will be bit players.
Chicken Man
"Bwuck Bwuck Buh BOK!"
Originally posted by moosecat
One BILLLLION downloads? [pinky finger in mouth]
That's huge. I like this strategy though. Overwhelm and saturate the market, even at an initial loss, so that after these campaigns are done, iTunes will be synonymous with legal music downloading and the others will be bit players.
No Loss for Apple, it is all profit as is the Pepsi deal. Pepsi and McDonalds are reportedly paying the full 99 cents for each download. Considering that these are NOT credit card transactions, the cost to Apple is nominal and part of their fixed distribution costs, which are already pretty much paid for with current volume. So Apple stands to keep almost all of the 34 cents in margin per track! Upwards of $300 Million to their botom line.
Originally posted by yoman
If so its gonna rain iTunes everywhere. Everyone should get an umbrella or better yet a bucket to catch them.
:)
Naw, no bucket/umbrella for me. I'm just going to stand outside, look up, open my mouth, and catch as much as I can that way :D
Though, I can't imagine Apple building up this huge hype with Pepsi(Superbowl) and then, maybe a few weeks later Mc Donald's comes in and says: 'Well, you and your phony 100m songs, very nice Pepsi, but how about a billion songs? May I present you our partner. You know him already, it's also Apple'. Headline next Morning: Pepsi CEO drowning Steve in 100m. liters of Diet Pepsi.
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