“Digital music goes prime time during this weekend’s Super Bowl. Pepsi-Cola’s launch Sunday of the highest-profile ad campaign yet for online music is expected to dramatically broaden its reach. ‘Parents who maybe didn’t pay much attention before will sit up and take notice when they see it on the Super Bowl,’ says Phil Leigh, an analyst at research firm Inside Digital Media,” Jefferson Graham reports for USA Today.
“Pepsi is promoting a contest to offer 100 million free downloads at Apple’s iTunes Music Store. The Super Bowl spot, before an expected audience of 90 million, ‘gets the subject of digital music to people who haven’t considered it before,’ says Ted Cohen, senior vice president at EMI, home of Norah Jones and Janet Jackson,” Graham reports. “Pepsi expects redemption rates of 10% to 20%. Apple and Pepsi would not discuss financial details.”
Graham reports, “Analysts expect Apple will reap huge rewards from the contest. Analyst Charles Wolf of Wall Street research firm Needham & Co. estimates the firm is selling 2 million songs per week. ‘This campaign will get them to 5-10 million per week by summer, or 200 million songs for the year,’ he says. The launch of iTunes last April revitalized the digital music business, which hadn’t found much consumer success with initial alternatives to unauthorized sites like Kazaa. Apple has sold 30 million downloads at 99 cents each. It claims 70% market share.”
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