Have It Your Way: Free.
Across the pond, the British are enjoying more than a strong currency this summer. They're getting free music. (The legal kind, that is.)
Consumers have been demanding free, or nearly free, music since Napster first shook the music industry out of its slumber nearly a decade ago.
Most labels have grudgingly partnered with Apple and other content providers to sell their protected songs at a price point they don't like. CD stores have shuttered, while online retailers and peer-to-peer networks have flourished.
But now, it appears that one major record label is dipping its toes in the giveaway waters.
EMI Music Group will offer free tunes to Burger King customers in a pilot rewards program in the U.K.
EMI already won over music lovers earlier this year, when it became the first of the major labels to offer its catalog online without the digital-rights management code that protects their copyrights but frustrates consumers who want to put the same song on more than one music player.
And now it's further cementing its place in the hearts of burger-eating, music-loving Brits by offering DRM-free tunes for free.
Vervelife, a Chicago-based digital promotions firm that counts Budweiser, Michelob, Unilever, and Nestle among its customers, consummated the deal between EMI and Burger King. It sets up loyalty programs for its corporate clients to reward their customers with digital media instead of with free t-shirts or plastic toys.
The Burger King test is a first for EMI, but if it's successful the label's rewards program could spread to other corporate customers, eventually giving more consumers access to free tracks by artists like the Beatles, Norah Jones, and Coldplay.
Buying a 12-pack of Bud? Here's a Keith Urban tune on us. Replacing your Axe Body Spray? Dance to the Gorillaz while you dress.
The deal works like this: Burger King pays Vervelife for its services. Vervelife pays EMI Group for its music. Instead of getting a toy in their Kids Meal, Burger King consumers get access to the prepaid music through a dedicated web site. So EMI still gets paid for its content, and its brand gets promoted through the program.
"It provides more value for the labels than they get through iTunes, where they're getting a percentage of 99 cents," says Justin Jarvinen, the C.E.O. and founder of Vervelife.
He won't say how much he pays EMI per download, but says it's "competitive."
While the Burger King pilot only includes one prepaid song per order, brands can choose to give away as many as they want. A recent promotional campaign for Axe Body Spray gave customers full playlists of 10 to 15 tunes.
But Burger King customers aren't the only Brits getting free music this summer. Prince, the little purple rock star with remarkable business prowess, partnered with The Mail on Sunday newspaper to give away copies of his new CD with each paper on July 15. The promotion was the first of its kind.
While it understandably ticked off music retailers and record labels, the stunt was largely seen as a success for paper: It sold 600,000 more copies than normal, which should please its advertisers. And Prince got loads of publicity, plus a reported $500,000 payment from the paper.
It's unlikely that such a campaign will hit major U.S. papers, even as they struggle to find new revenue streams. Indeed, when a Los Angeles Times columnist wrote a piece advocating the promotion, the paper's editors reportedly killed it. http://www.laobserved.com/archive/2007/07/goldsteins_killed_column.php
Can music indeed be free if the labels and artists can figure out a way to still get paid? Prince and EMI are blazing new trails to answer that question. But so far, the British are the only lucky guinea pigs for these projects.
U.K.-visiting Americans could get free music too, if only they could afford the trip.
by Megan Barnett
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