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MacRumors
Nov 19, 2003, 12:47 PM
Martin Bandier, Chairman and CEO of EMI Music Publishing, spoke at EMI's Interim Results 2003 Conference (http://www.emigroup.com/webcast.htm) today.

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 (http://www.macrumors.com/pages/2003/11/20031106102327.shtml) 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 (http://www.macrumors.com/pages/2003/11/20031106135855.shtml), we received confirmation that the deal was in the works (http://www.macrumors.com/pages/2003/11/20031107030842.shtml).

While it is possible the comments may be reflective of the circulating rumors, it seems likely that EMI's CEO would be privy to such knowledge and unlikely to make comments at a financial conference simply based on unfounded rumors.

yoman
Nov 19, 2003, 12:57 PM
If so its gonna rain iTunes everywhere. Everyone should get an umbrella or better yet a bucket to catch them.

:)

macMaestro
Nov 19, 2003, 01:00 PM
Whoops... :D

Brock
Nov 19, 2003, 01:02 PM
I eat at mcdonalds everyday since its right outside my door! I only wish this promotion was in Canada!

moosecat
Nov 19, 2003, 01:03 PM
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.

Chicken Man
Nov 19, 2003, 01:04 PM
Alas, I have no Mickey D's for 60 miles in any direction...

Chicken Man
"Bwuck Bwuck Buh BOK!"

coolsoldier
Nov 19, 2003, 01:08 PM
Yay...there's a McDonalds right across the street from me :) I'll have to start getting my fast food from there instead of Sonic :D

stingerman
Nov 19, 2003, 01:18 PM
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.

MasterMac
Nov 19, 2003, 01:25 PM
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

slash8slash1
Nov 19, 2003, 01:29 PM
that deal is not between Mc Donald's and Apple but with Napster? Let's hope not!!
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.

Trowaman
Nov 19, 2003, 01:31 PM
Just say when and I'll go running to my least favorite fast food restraunt. Suddenly a Big n Tasty or a Big Mac does not sound so bad. I just hope that Microsoft music store that was previously reported and installed on all Windows machines hold no ground. This deal may be the answer to Apple's prayers though as far as bringing us back as a major player in the computer world. :D

Trowaman
Nov 19, 2003, 01:33 PM
Originally posted by slash8slash1
that deal is not between Mc Donald's and Apple but with Napster? Let's hope not!!
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.

DON'T EVEN START CIRCULATING SUCH BAD IDEAS!!! It makes me paranoid.

No I feel sad . . . :(

Wash!!
Nov 19, 2003, 01:36 PM
They should know that the ipod is the #1 mp3 player and to not cater to those people in a promotion it would be just stupid...

arn
Nov 19, 2003, 01:41 PM
Originally posted by slash8slash1
that deal is not between Mc Donald's and Apple but with Napster? Let's hope not!!


yep... The EMI guy didn't specify which service would be used for the 1billion thing. :)

That being said, I think there's a lot otherwise pointing to it being itunes

arn

MikeMo
Nov 19, 2003, 01:48 PM
Hmmm... I wonder if the big Music event on the 28th has anything to do with this?

Bunzi2k4
Nov 19, 2003, 01:57 PM
Originally posted by MikeMo
Hmmm... I wonder if the big Music event on the 28th has anything to do with this?

Hey... i'm gonna e at an apple store on the 28th... well lets hope McDonalds will have their promotion with itunes and not napster (bleh)...

orion123
Nov 19, 2003, 01:58 PM
Originally posted by stingerman
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.

Um no, McDonalds would not be paying $1 billion to anyone. If that number is correct, I'm sure Apple is getting paid in the range of $500 mil tops.

I forget where I read but wasn't McD's whole ad budget next year around $800 mil and with this whole new "I'm Lovin' It" push, I bet there isn't much left for Apple.

slash8slash1
Nov 19, 2003, 02:05 PM
Originally posted by Trowaman
DON'T EVEN START CIRCULATING SUCH BAD IDEAS!!! It makes me paranoid.

No I feel sad . . . :( was: Mc Donald's-Napster?

Well, I thought again:confused: The Apple/Pepsi giveaway starts in January and ends three month later, if I remember correctly.
Hm, that means Spring 2004. When is Apple expected to start ITMS in Europe->:D Is there a better time to give away a billion songs without kicking Pepsi in the :eek: ? And it would make more sense since so many songs seem a bit too much for just the US.

Steamboatwillie
Nov 19, 2003, 02:05 PM
... Hamburgler closes Kazaa for the last time and fires up iTunes.

"Robble Robble"

;)

MacFan25
Nov 19, 2003, 02:28 PM
The publicity would be great for both Apple and McDonald's, as the Pepsi deal will too.

It'll be interesting to see how they advertise it though.

moosecat
Nov 19, 2003, 02:29 PM
Originally posted by orion123
Um no, McDonalds would not be paying $1 billion to anyone. If that number is correct, I'm sure Apple is getting paid in the range of $500 mil tops.

I forget where I read but wasn't McD's whole ad budget next year around $800 mil and with this whole new "I'm Lovin' It" push, I bet there isn't much left for Apple.

I don't know either way, but the fact that 1 billion downloads are being given away certainly doesn't mean that 1 billion songs will be downloaded. I'd bet, in fact, that it'll be more like a 10% usage rate (a totally uneducated guess that assumes the downloads are handed out in something like those little pull-off Monopoly tabs). Perhaps McDonald's will only pay for the songs actually downloaded.

Awimoway
Nov 19, 2003, 02:31 PM
One possibility is that the EMI exec is trying to persuade McDonalds, with a little public pressure, into going along with the deal. Assuming, of course, he's privy to knowledge of such a deal being considered by McDonalds.

simply258
Nov 19, 2003, 02:38 PM
Originally posted by orion123
Um no, McDonalds would not be paying $1 billion to anyone. If that number is correct, I'm sure Apple is getting paid in the range of $500 mil tops.
As in any promotion, not all winners claim their prizes, so actual cost would be much less. maybe 400,000 ?

MattG
Nov 19, 2003, 02:46 PM
Mmmm I see a Big Mac in my future

BenRoethig
Nov 19, 2003, 02:48 PM
This is great exposure for Apple at the very least. If Apple sells the songs at maybe a nickel above cost, that's still a decent chunk of change. The more money in the bank the more Apple has to spend on mac development and the more exposure the more switchers will come to the light side.

mrsebastian
Nov 19, 2003, 02:51 PM
i hope the rumors are true. this could be huge for apple, not only for increased revenue, but the exposure could be amazing. god forbid itms goes international, just think of all the mcdonalds around the world.

agreenster
Nov 19, 2003, 03:09 PM
Originally posted by simply258
As in any promotion, not all winners claim their prizes, so actual cost would be much less. maybe 400,000 ?

.04%?? What are you talking about? Dont forget, one billion is 1,000 million. 400,000 is .04% of 1 Billion. (1 million is .1% of a billion, so 400,000 is a little less than half that)

A billion dollars is a rediculous amount of money.

Maybe you meant to say 400 million? Again, ludicrous.

mdntcallr
Nov 19, 2003, 03:10 PM
I know Marty, while obviously he is an insider, he could have just been repeating the same news he read via the newspaper, the same way the rest of us did.

I wouldnt read too much into this. Although i hope that we get the McDonalds deal.

Also, while the full potential is for $1 Billion in cash value. You can bet that the payments will be based solely on redeemed amounts and I would also bet on a volume discount. even if details are kept private.

No way McDonalds will have the full amount redeemed. I bet that probably about 100 million songs at most would be redeemed via this promotion, probably closer to 60-80 million.

It is a statistics probablility for coupon redemtion. most people just eat their fries or soda and throw away the game pieces. Same will happen here.

although i bet alot of people would go through the garbage now.

shadowfax
Nov 19, 2003, 03:17 PM
does EMI have anything going with apple iTMS? radiohead is on EMI's label, and radiohead isn't on iTMS. i just assumed EMI hadn't joined in. anyone know?

AirUncleP
Nov 19, 2003, 03:25 PM
Loose lips sink ships. Hope not in this case.

Come to think of it......I don't spend much time in Mickey D's anyway.

SiliconAddict
Nov 19, 2003, 03:28 PM
Did I just hear a cat get B**** slapped? :D Say goodbye Napster. If people didn't know about iTunes and iTMS before they sure as heck will now. http://www.pocketpcthoughts.com/forums/images/smiles/rotfl.gif

whfsdude
Nov 19, 2003, 03:35 PM
Get a super size fries' today and get free music. "I like big butts…"

Really someone should make an ad like that :P

itsbetteronamac
Nov 19, 2003, 03:40 PM
God! i hope you get them on those peel off things on the frys. I don't eat red-meat and there chicken is nasty. Well anyways mcdonalds here I come. I might need to get reaquainted considering I have ben there in 5 monthes.

gwuMACaddict
Nov 19, 2003, 03:46 PM
Originally posted by whfsdude
Get a super size fries' today and get free music. "I like big butts…"


hahahaha!

i do like the idea that apple is trying to broaden it's appeal. this could really do alot for apples marketabillity in the future as well as market share. but i dont see myself eating any mcdonalds food in the future, regardless of what is associated with it. yuuuuck.


:D

littlemacdude
Nov 19, 2003, 03:59 PM
If it is true...maybe bono will finally teach the world to i tune

Sailfish
Nov 19, 2003, 04:01 PM
I don't see a "Billion Song Giveaway"

but it would be nice.

fuge
Nov 19, 2003, 04:02 PM
Originally posted by Steamboatwillie
... Hamburgler closes Kazaa for the last time and fires up iTunes.

"Robble Robble"

;)

lmao

great visual

make it a commercial somebody

TrenchMouth
Nov 19, 2003, 04:05 PM
so what your saying is...all i have to do to get as many songs as i want for free is eat as much mcdonalds and drink as much pepsi as possible right?

well at least i only have to sell my health for music. beats having to sell my house for cds or my soul because i dl music illegally.

El Payo
Nov 19, 2003, 04:07 PM
Maybe Napster has a clue. Or Microsoft - they are about to launch a service kidz.

IndyGopher
Nov 19, 2003, 04:10 PM
Originally posted by TrenchMouth
so what your saying is...all i have to do to get as many songs as i want for free is eat as much mcdonalds and drink as much pepsi as possible right?

well at least i only have to sell my health for music. beats having to sell my house for cds or my soul because i dl music illegally.
Exactly! See? even the tiresome Holier-Than-Thou crowd are starting to get it.

gola
Nov 19, 2003, 04:42 PM
Is everyone here so into apple that cooperating with every kind of multinational monstercapitalism is the greatest thing ever? Please reply if someone out there thinks this may be a wrong turn for apple. I hope I am not alone...

ryan
Nov 19, 2003, 05:18 PM
Originally posted by stingerman
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. Actually, according to SJ, Apple makes no money from the iTunes music store: http://www.theregister.com/content/6/33850.html

autrefois
Nov 19, 2003, 05:29 PM
Originally posted by gola
Is everyone here so into apple that cooperating with every kind of multinational monstercapitalism is the greatest thing ever? Please reply if someone out there thinks this may be a wrong turn for apple. I hope I am not alone...

Here (http://forums.macrumors.com/showthread.php?s=&threadid=46339) is a link to a previous thread where some people, including me, raised some concerns about that very issue. Just a warning--don't be surprised to receive some negative responses to your post. I guess since it is a pro-Mac forum, it's understandable.

--Note it's around the 9th or 10th post that some people start mentioning being against the possible deal--

neverfade
Nov 19, 2003, 05:45 PM
Originally posted by Brock
I eat at mcdonalds everyday since its right outside my door! I only wish this promotion was in Canada!

how fat are you?:rolleyes:

gwangung
Nov 19, 2003, 05:57 PM
Originally posted by autrefois
Here (http://forums.macrumors.com/showthread.php?s=&threadid=46339) is a link to a previous thread where some people, including me, raised some concerns about that very issue. Just a warning--don't be surprised to receive some negative responses to your post. I guess since it is a pro-Mac forum, it's understandable.

--Note it's around the 9th or 10th post that some people start mentioning being against the possible deal--

Given that Apple is in the Fortune 500, I'm just wondering WHY people are dubious about it NOW. A Fortunte 500 company is nothing BUT the epitome of multinational monster capitalism.

rdowns
Nov 19, 2003, 06:22 PM
Way cool. Apple could post a sign outside the iTMS store saying "Over a billion served".

rdowns
Nov 19, 2003, 06:25 PM
Originally posted by orion123
Um no, McDonalds would not be paying $1 billion to anyone. If that number is correct, I'm sure Apple is getting paid in the range of $500 mil tops.

I forget where I read but wasn't McD's whole ad budget next year around $800 mil and with this whole new "I'm Lovin' It" push, I bet there isn't much left for Apple.

Reports (OK, rumors) say that McD will pay full price for each song. No way could Apple sell them for half price unless the record companies agreed to lower their rates. No way will a billion be redeemed so no way McD spends the full amount. If 25 % are redeemed, it will be hugely successful for all parties.

rdowns
Nov 19, 2003, 06:32 PM
Originally posted by gola
Is everyone here so into apple that cooperating with every kind of multinational monstercapitalism is the greatest thing ever? Please reply if someone out there thinks this may be a wrong turn for apple. I hope I am not alone...

As a shareholder and Mac fan, I'm ecstatic about promotional ties ins like these. Will do more to grow mind and/or market share than anything else.

I hardly think promotions like this will alter people's eating and drinking habits much. You either eat McD or you don't. I love 1/4 lbs. with cheese but haven't eaten one in years. A free song will hardly change my eating habits.

rdowns
Nov 19, 2003, 06:33 PM
Originally posted by ryan
Actually, according to SJ, Apple makes no money from the iTunes music store: http://www.theregister.com/content/6/33850.html

Sell a billion songs and Apple will make plenty.

ITR 81
Nov 19, 2003, 07:30 PM
I can see it now.
Micky D logo
"Over 1 billion Served"
Now let us serve you a billion iTunes to our favorite customers. Come in today to get your chance to win iTune music tracks and free food.

I doubt Micky D's would go to Napster or MS because they are not market leaders and they don't have the popularity either.

Today I started forum on MS forum and asked how many folks will be buying a iPod this yr and almost everyone that posted was positive and so far 15 folks said they have bought one for this Christmas season.

I talked to a friend at Best Buy's and he said iPod's are flying off the shelves he sold 30 iPod's all last week. He said folks ask for best MP3 player and Best Buy's shows them the iPod and they buy them.
He said it's pretty easy sale when you tell them about Pepsi giving away 100,000 tracks of free music for the iPod. He said most parents just say "Wow if Pepsi is dealing with them they must be pretty popular."

DangerDiabolik
Nov 19, 2003, 09:09 PM
So...how do you think this will this work ?

peel off stickers and get free songs ?

ITR 81
Nov 19, 2003, 10:04 PM
Probably.

Awimoway
Nov 19, 2003, 10:12 PM
Or maybe something else. One of the most effective means of saving $$ on prize campaigns in recent years is to simply put a code on the product that you have to redeem online. The code itself doesn't tell you dick about whether you've won. Only those who bother to take the time to enter their codes will have any chance of knowing whether they won something, and since the excitement factor of a barely legible alphanumeric code isn't very high, I'm sure a lot of people just chuck the codes in the trash.

mrob
Nov 19, 2003, 10:28 PM
For those actually listening to the webcast, the relevant quote occurs at 50 minutes 55 seconds, not at 38 minutes as reported by "Administrator".

- Robert Munafo

Gymnut
Nov 20, 2003, 12:32 AM
And a sideorder of fries please....:D

mityx
Nov 20, 2003, 02:31 AM
Just a thought...
with all the competition popping up everywhere, perhaps these rumours are misdirected towards involving Apple at all.

It's quite possible that this rumour actually involves a "one-up-manship" move on the part of (nooooo....) Microsoft

With their recent announcement of entering into the online music battle, this seems like just the tactic Redmond would take.

Anyone? Thoughts?

Awimoway
Nov 20, 2003, 02:45 AM
Well, it would fit. I have about the same esteem of McDonalds as I do of Microsuck.

suzerain
Nov 20, 2003, 02:47 AM
Originally posted by Chicken Man
Alas, I have no Mickey D's for 60 miles in any direction...

Chicken Man
"Bwuck Bwuck Buh BOK!"


dude...where do you live? the moon? i'd love to be 60 miles away from a mcdonald's...i didn't think it was possible!

Trimix
Nov 20, 2003, 10:20 AM
Originally posted by Brock
I eat at mcdonalds everyday since its right outside my door! I only wish this promotion was in Canada!

And you do not glow green when it gets dark yet ?
I am sorry, I just could not resist.
Pass me some of the vouchers then, will you ?
Cheers:D

Trimix
Nov 20, 2003, 10:29 AM
Originally posted by suzerain
dude...where do you live? the moon? i'd love to be 60 miles away from a mcdonald's...i didn't think it was possible!

try outer mongolia :D