June 02, 2004

Music and McDonalds

Sony and McDonald's link up for music download deal

Staff, Brand Republic 08:00 02-06-2004
NEW YORK - Sony and McDonald's are targeting teenagers as part of a new promotional deal that will see the two offer music downloads to people from Sony's Connect digital music service.

Sony Connect is hoping that the deal will attract teenage music fans to its download service, which is currently available in the US only, while McDonald's hopes that it will position the store as a venue for those interested in digital music.

According to reports, McDonald's will invest $30m (16.3m) in advertising the partnership. In return, it will get discounts to license some songs from Sony Connect, which could be given for free to some customers.

McDonald's said in a statement on Tuesday that it was announcing a new strategic music alliance in Hollywood at an event that will feature appearances from Justin Timberlake, who appeared in the brand's "I'm lovin' it" advertising, and Ashanti.

The music download industry is becoming highly competitive, especially in the US where music fans have access to online stores such as Napster and iTunes, as well as major retailers such as Wal-Mart getting in on the act.

Sony Connect, which launched in May and charges $9.99 for a monthly subscription, already has a deal with United Airlines' loyalty scheme Mileage Plus. The deal lets members spend miles on music and earn songs by using the Mileage Plus-branded Visa card.

In the UK, McDonald's has been building its relationships with internet companies, with deals including a BT wi-fi deal and the installation of EasyEverything internet terminals in some of its restaurants.

Brand Republic

Posted by Craig at June 2, 2004 09:20 PM