A Billion Free iTunes from Mickey D’s

By on November 6, 2003

According to a New York Post article,

Ronald McDonald is stealing Pepsi’s thunder.
Less than a month after Pepsi announced a blockbuster deal to give away 100 million downloads from Apple’s iTunes music service to its customers, … McDonald’s plans to give away up to 1 billion songs in a marketing campaign, according to sources familiar with the matter.

That’s 1 Billion. With a ‘B’.

According to the Post, this is “a dramatic move that gives a thumbs up to the music industry’s efforts at creating legal alternatives to file sharing.” Being realistic, the Post says that “because not all customers will take advantage of the offer, McDonald’s actual spending on the campaign will probably be in the hundreds of millions of dollars.” But still…

What surprised me is that McD’s will be paying market price (99 cents) for each song, and Pepsi did the same. I would’ve assumed that there would be some discount involved between Apple and Pepsi/McD’s. After all, Apple is likely only paying a pittance to the artists for each song sold, and given the volume involved… Even if Apple were to not charge a thing to Pepsi/McD’s, what better way to get people to try the system and get them hooked? Drug dealers do it all the time (or so I’m told.)

But they’re getting market price. Wow!

That ought to put a nice shine on Apple’s annual report.

Gadgetopia

Comments

  1. From what I’ve read, I don’t think Apple has much wiggle room in their pricing. The songs are a loss leader for iPod sales. The record companies take something like 70 cents for each sale, leaving with 30 cents (give or take) to cover coast of bandwidth and advertising.

    Still impressive, though; you’re right.

  2. i think it discusting that u should have to pay for the i.tunes as if we havent payed enuf for the i pod its self, u have pay for the songs as well!! what do they think we are RICH???

  3. i think it sucks that we have to pay for these itunes i mean the time we put all the songs we want on there we woud of paid more for the songs then what we did for the ipod!!

  4. maybe they are a little out of hand but hey if they wanna make money and they know you’re going to pay for it then they are going to make it expensive.

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