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MasterCard joins with Universal to offer free music downloads

Richard Driver — Thu, 03 Jul 2008 16:16:00 EST

Filed under: Deals, Products and Services, Launches, Consumer Experience, Apple Inc (AAPL), Amazon.com (AMZN), Marketing and Advertising, MasterCard Inc'A' (MA)

Billboard reported Thursday that MasterCard Inc. (NYSE: MA) has launched a new campaign titled "Roots of Rock" that offers free downloads for cardholders from Universal Music Group. Apparently the free aspect of the campaign is limited and after 100,000 songs have been downloaded, MasterCard will begin to charge $0.80 per track. Even after the credit card company begins charging for downloads, pricing for tracks is still lower than Amazon.com Inc. (NASDAQ: AMZN)'s MP3 Store ($0.89) or Apple Inc. (NASDAQ: AAPL)'s iTunes Store ($0.99).

Cardholders who also make a purchase by August 31 will be "entered into a sweepstakes with a grand prize of having a meet and greet with Jon Bon Jovi, Eric Clapton or Kenny Chesney." MasterCard executive Amy Fuller told Billboard with the new campaign, the company has "created unparalleled music experiences with three of the world's most popular artists, providing consumers with an intimate perspective on these icons that few fans will ever have." But those fans will have to win the sweepstakes.

MasterCard's campaign to offer free downloads is like numerous other programs that are linked with music companies, but it offers to take the digital market to a larger consumer base. Lowered prices (eventually) for the campaign mean that Universal Music Group will continue to hold on to the lead in music sales, if only because the music company is the only one on board with MasterCard. Consumers that might not have ever downloaded a track may be enticed to try out the campaign and the sweepstakes. This type of growth is what the music industry will need if digital sales are ever going to replace physical sales successfully and completely.

MasterCard joins with Universal to offer free music downloads originally appeared on BloggingStocks on Thu, 03 Jul 2008 16:16:00 EST. Please see our terms for use of feeds.

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In the wake of massive cuts, EMI CEO talks painful changes, but are they new?

Richard Driver — Tue, 15 Jan 2008 18:08:00 EST

Filed under: Bad News, Consumer Experience, Rants and Raves, Employees

After the announcement that EMI Group plc (ADR) (OTC: EMIPY) will cut between 1,500 and 2,000 jobs around the world with the goal of saving almost $400 million a year, head Guy Hands made a presentation on the changes he and his consultants feel are necessary for the survival of the music industry. A key component of his presentation was the remark that the changes would not occur "without pain," signaling the "end to the industry model of 'signing up as many artists as possible, while taking huge bets on a few.'"

The push seems aimed at "embracing consumers' needs in the era of digital music." The painful changes he speaks about are nothing more than the commentary the music industry has faced from critics in recent years, and a cut to save money is painful to those who lose their jobs. It is not painful however, if your ideas about the changes do not differ significantly from what critics have stated for so long. If you look at the music industry and disregard its failing business model for a model designed for equity, then the painful changes are only going to be multiplied.

According to Billboard.com, "Hands told staffers that the overall challenge was to move to a structure which can best monetize artists' music in a market where the CD is no longer so dominant, and where many consumers have become used to not paying for music." The problem is that this discussion is centered around music as a commodity that consumers need, and that simply is not the case. If consumers are not used to paying for music, and it is a commodity, then a simply monthly fee like a water or gas bill would provide the simple fix while allowing consumers access to the large quantities of music produced every year. As usual, that type of arrangement speaks directly against the monetary value placed on music, as it turns music into something easily shared and gains are taken from the industry. Is that any different than "an era where consumers are not paying for it" though?

In the wake of massive cuts, EMI CEO talks painful changes, but are they new? originally appeared on BloggingStocks on Tue, 15 Jan 2008 18:08:00 EST. Please see our terms for use of feeds.

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Whole Lotta Love: Apple's iTunes store starts pre-order for Led Zeppelin

Richard Driver — Wed, 24 Oct 2007 17:30:00 EST

Filed under: Good news, Products and Services, Apple Inc (AAPL), Marketing and Advertising

When the levee breaks ... baby, you gotta buy!

The entire catalog of 1970s rock band Led Zeppelin became available for pre-order on Apple Inc.'s (NASDAQ: AAPL) iTunes Store yesterday, reports Billboard. Fans who want it all will be able to use the $99 "one-click download" for the band's entire 165-song catalog, but that does not become available until November 13, the day when the catalog can be downloaded.

According to Apple and iTunes executives, securing the Zeppelin catalog has been in the works for four years, and is a really "exciting" time, since the band has been one of the most requested. Billboard also comments the addition leaves only The Beatles and Radiohead as the only two major acts not available from the digital store. The "one-click download" or "digital boxed set" is another feature that iTunes is wielding especially for Led Zeppelin, as executive Eddy Cue told Billboard: "We've held this out for the special artists that have a significant fan base. It's probably the best boxed set we've ever done, in any kind of price range."

With the massive, and low-priced iTunes digital boxed set becoming available the same day as the new greatest hits album Mothership, one has to wonder whether it will make any impact on the physical sales of that compilation. Clearly the 2-disc set will be much cheaper than the boxed set, but an offer such as that makes it easy to acquire the band's entire catalog versus a simple 24-track glimpse. It will be interesting to see if this digital boxed set can impact physical sales more than previous entire catalog sets from iTunes as the number of tracks and price are significantly lower than previous "collections" (For comparison, consider the 2006 $199.99 773-track Bob Dylan Collection -- but the track-per-price ratio there is even better.)

Will only hardcore Zep fans want the "boxed" set over the physical CD set? Time will tell. But as a special bonus, fans who pre-order the tunes get entered into a drawing to attend the band's one-off concert in London this November 26. Now that's a whole lotta love.

Whole Lotta Love: Apple's iTunes store starts pre-order for Led Zeppelin originally appeared on BloggingStocks on Wed, 24 Oct 2007 17:30:00 EST. Please see our terms for use of feeds.

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