Cheapest Music Marketing Tie-In Ever! November 20, 2008Posted by David Card in Media.
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PR folks at Dr Pepper swear this gimmick has nothing to do with Guns n’ Roses, Axl Rose, Irving Azoff, Front Line Management, or Universal Music/Geffen Records.
The 17-years-in-the-making album drops on November 23 — probably — as a Best Buy exclusive, and Dr Pepper has 23 flavors. (Not counting prune.) You can hear “Chinese Democracy” early at MySpace.
Latest Zune Moves November 20, 2008Posted by David Card in Media.
Tags: Microsoft, music
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Microsoft made a series of moves this week around its Zune device and service, including hardware price cuts ($10 below iPods), a new firmware release with bundled games, launching a new TV campaign pumping the software, and a new pricing scheme for its subscription service. Microsoft renegotiated its label deals so that now, for the same $15 a month, subscribers can keep ten songs a month. That’s either a free album or the on-demand service for $5, depending on how you look at it. Everybody but Sony is in DRM-free MP3 format.
That’s a sweet deal, but will likely appeal primarily to the same digital music aficionado customers who’ve always had a spot in their hearts for subscription services. Those high-spending, digitally active music fans represent about 15% of the US online adult and teen population — around 26 million adults and 3 million teens. About 2-3 million people subscribe currently.
I asked Microsoft if it considered just cutting the price of the service, and execs said, sure, but that wouldn’t get over the “rental” hump. I also wondered if the model can be profitable. On-demand music subscriptions can be, if customer acquisition costs are managed, but 99-cent singles are only barely profitable at scale. Microsoft answered that the music biz is all about scraping out a few points of margin from multiple revenue streams. Okay, but subscriptions, niche though they are, are one of the few places where there might be a decent margin for the service and the rights holder. And Microsoft still hasn’t done much about advertising revenues.
Microsoft’s TV campaign features artists like Common, Afrika Bambaataa, and Kings of Leon and is focused on national cable with a few primetime network spots. Its theme is turning your PC into a music discovery machine, and is a move towards Microsoft’s new positioning around “Zune-powered experiences” across multiple “tuners.” That is, not just MP3 players, but PCs, phones, Xbox, etc.
UPDATED: Sony BMG is onboard
More on Saving Yahoo November 19, 2008Posted by David Card in Media.
Saving Yahoo November 18, 2008Posted by David Card in Media.
What Yahoo’s new ceo will have to do. Jupiter report forthcoming.
Help Me Figure Out Personas vs. Modes November 11, 2008Posted by David Card in Media.
Since we don’t take comments on ye olde Jup blog, help me out at the new place.
New Dawn Fading? November 8, 2008Posted by David Card in Media.
Why is Amazon promoting a special edition Joy Division Zune for $350 to me? It came out in June in the old 80GB form factor (new 120GB models only cost $250; even in Gears of War 2 special edition livery, they’re $280.)
Does Amazon know me that well?
It may indeed be a collectible; I can’t find one on eBay, where the Halo 3 edition 30GB model is $127. Where will it end?
I Sure Hope This Isn’t the Future Biz Model of Newspapers November 7, 2008Posted by David Card in Media.
Future of newspapers: 75-cent collectibles for historic events. Memo from your newspaper to you, courtesy Romenesko:
And then a few years ago you rewarded my loyalty by straying. You went elsewhere. You sought the company of others who, you thought, gave you something that I could not. Fickle and faithless, you went looking for something faster, newer and younger.
I wondered, incessantly, had I failed you? Was it me?
And then one day this week, You wanted me again. Hungrily. Desperately. You searched everywhere for me. You lined up outside my door, stood in the rain and cold, on the chance that I would be available to You again.
And I wasn’t there. How ironic!