McDonald's 1 Billion Song Promotion... A Go?

[MacRumors]

Martin Bandier, Chairman and CEO of EMI Music Publishing, spoke at EMI's Interim Results 2003 Conference 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 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 received confirmation that the deal was in the works.

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]

Could it really be true?

If so its gonna rain iTunes everywhere. Everyone should get an umbrella or better yet a bucket to catch them.

 

[macMaestro]

Whoops...

 

[Brock]

Hooray!

I eat at mcdonalds everyday since its right outside my door! I only wish this promotion was in Canada!

 

[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.

 

[Chicken Man]

My waistline sighs...

Alas, I have no Mickey D's for 60 miles in any direction...

Chicken Man
"Bwuck Bwuck Buh BOK!"

 

[coolsoldier]

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

 

[stingerman]

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]

Re: Could it really be true?

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

 

[slash8slash1]

What if...

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]

yes yes yes!

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.

 

[Trowaman]

Re: What if...

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!!]

it would stupid for mcd no to go with apple

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]

Re: What if...

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]

Hmmm... I wonder if the big Music event on the 28th has anything to do with this?

 

[Bunzi2k4]

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]

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]

Re: Re: What if...

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 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-> Is there a better time to give away a billion songs without kicking Pepsi in the ? And it would make more sense since so many songs seem a bit too much for just the US.

 

[Steamboatwillie]

... Hamburgler closes Kazaa for the last time and fires up iTunes.

"Robble Robble"

 

[MacFan25]

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]

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]

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]

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]

Mmmm I see a Big Mac in my future

 

[BenRoethig]

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.