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Amazon, Pepsi reveal Superbowl MP3 promo

updated 11:15 am EST, Mon January 14, 2008

Amazon MP3 Pepsi Promo

Amazon and Pepsi this morning claimed a changing of the guard with word of Pepsi Stuff, a new promotional campaign bent on accomplishing for Amazon what 2004's iTunes promo did for Apple. Rather than hide complete giveaway codes under random bottle caps as with the iTunes campaign, the new promo guarantees songs based on the number of drinks: buyers instead claim points from each bottle that go towards free items. Five bottles are enough to qualify for a single song. Since every song comes in the unprotected and more universal MP3 format, nearly every user of a portable media player can claim the rewards from the campaign -- including iPhone and iPod owners, Amazon is keen to state.

Other items are available and include downloads from Amazon's Windows- and TiVo-only Unbox video service, electronics, and physical media such as CDs or movies. Every bottle labeled as a Pepsi drink will qualify for the campaign.

Further echoing past collaboration between Apple and Pepsi, the Amazon campaign will debut with the Superbowl on February 1st and is widely anticipated (though not confirmed) to begin with a TV spot to air during the Superbowl. Neither Amazon nor Pepsi has yet said if or when the campaign will end.

The revelation marks a second significant victory for Amazon versus Apple in as many weeks, with Amazon having secured all four major labels in a protection-free agreement last week by adding Sony BMG's catalog to its music collection. Apple so far has only enlisted EMI and has reportedly been deliberately rebuffed by Universal and Warner when asking for new long-term contracts for the iTunes Store. Both labels are said to be looking for more flexible per-song pricing from Apple as well as a chance to undermine the iPod manufacturer's majority stake in online music sales.



By Electronista Staff
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  1. dashiel

    Fresh-Faced Recruit

    Joined: Sep 2001

    0

    fail

    clearly bezos doesn't have the clout as jobs. five drinks for a $1 single? not gonna work.

  1. climacs

    Forum Regular

    Joined: Sep 2001

    0

    pepsi sux anyway

    ever drank diet pepsi? I know, to those of you who are used to fattening sugary drinks, it all tastes like c***. But for those who prefer not to gain 200 calories every time they drink a soda... Diet Pepsi,ye gods. It's like drinking chemical concoction and my taste buds are USED to diet soda!

    regular Pepsi - waaaaay too sweet, no bite like Coke has.

    BTW the article is confusing, it makes it sound like the Super Bowl is on 2/1, it's really on 2/3.

  1. danviento

    Fresh-Faced Recruit

    Joined: Dec 2005

    0

    Amazon whoring out again?

    The at-first lower prices and now "flexible pricing" is giving the labels what they wanted- the ability for THEM to dictate pricing. Understandably, this is in their best interest, and Amazon just wants to get market traction for now since no else seems to be able to chomp any of the marketshare from iTunes. Who knows, maybe when people actually start buying higher-priced music from them (to account for the labels bigger cut/) it'll actually be lucratuve for Amazon. I predict consumers will go to the place where they can get the song(s) they wanted for the lowest price, as long as the quality is decent.

    And this "add up your caps" c***? Before you could stop buy a gas station and once in a while you'd get a freebie song. Certainly, chances were about the same, but you didn't have to invest in 'X' amount of drinks to get a song. You could just radomly get a bottle, and get a free song. Now you HAVE to buy 5 drinks. It'll be interesting to see which gets people to buy fore bottles.

    On that note, we can't really say which store, Amazon or iTunes, sells more soda. The "giveaway" models are different. It's too bad really, else something could be said about the results.

  1. mgpalma

    Fresh-Faced Recruit

    Joined: Sep 2000

    0

    5 for 1?

    "Five bottles are enough to qualify for a single song."

    Whoop...

    This will be anemic compared to the iTunes deal.

  1. climacs

    Forum Regular

    Joined: Sep 2001

    0

    amazon

    should be taken seriously WRT competition with iTunes (regardless of the merits of this promotion).

  1. danviento

    Fresh-Faced Recruit

    Joined: Dec 2005

    0

    climacs^ agree

    Despite my earlier comment about their practices, they SHOULD be taken seriously. When they take hits on profit/song to undercut the competition, they become a competitor. Record labels are obviously warming up to them.

    Does any of this remind you of the MS strategery...

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: climacs agree

    You're assuming they are taking a hit on profit/song. Perhaps it's apple who've been keeping the prices high to keep it's share high, not to mention it's 'nice' price of 99 cents.

    I guess in the old days you liked it when your only choice to buy a CD was Sam Goody at the mall, too.

    Competition is a GOOD thing (whether its competing with Apple or competing with Amazon). It helps keeps prices down and service up

  1. sweyhrich

    Fresh-Faced Recruit

    Joined: Oct 2000

    0

    Promotion ends...

    ...11/15/08, according to the distinctive yellow caps that have already appeared here in Omaha, NE.

  1. nat

    Junior Member

    Joined: Mar 2002

    0

    assuming

    "You're assuming they are taking a hit on profit/song. Perhaps it's apple who've been keeping the prices high to keep it's share high, not to mention it's 'nice' price of 99 cents."

    perhaps. perhaps not. your speculation is better in what way exactly?

  1. testudo

    Forum Regular

    Joined: Aug 2001

    0

    Re: assuming

    perhaps. perhaps not. your speculation is better in what way exactly?

    I wouldn't say I was speculating, just offering another option. But, if it were speculation, I'm not saying it's better, just different.

    But, consider the fact that

    (a) Amazon didn't leap into the field without any real competition, like Apple, and thus had a price point to compete against.

    (b) Amazon already had much of the infrastructure (servers, billing, accounts, etc) such that their start-up costs would be lower

    (c) the labels already had their content converted to digital, so they have more to play with (within the restrictions of DRM-free, of course), so any cost they might have had to endure to perform this themselves, or 'pay' the labels to do, would be neglible

    (d) no advertising (that I've seen)

    (e) no DRM to deal with, which means no costs trying to find better ways to lock down your music, fixing holes or workarounds in the DRM, etc.

    To sum up, then, there's every reason to think their overall costs would be less then apple, and would have no problem charging less.

    But I know, it's so much easier to think anyone competing against apple, and charging less, is doing it at a loss to drive Apple out of business. Makes for a more interesting read.

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