From: http://www.fool.com/Server/FoolPrint.asp?File=/news/mft/2004/mft04032307.htm

"McMusic for the Masses?
By Alyce Lomax
March 23, 2004

Now that digital downloading is all the rage, rumors are flying, and it's time for "deal watch." McDonald's (NYSE: MCD) is rumored to be pairing up with Sony (NYSE: SNE) in a promotional campaign involving the Sony Connect music service, with a planned launch for the spring.

According to the Los Angeles Times, McDonald's will serve up about $30 million in advertising, receiving discounts on songs licensed from Sony Connect. The music will be given away for free with items from its menu. (The mind races. Happy Musical Meals? A song with your salad?)

We've mused about the prospects for Apple (Nasdaq: AAPL) -- with its iPod as well as its iTunes site for digital downloading -- and its marketing blitz with Pepsi (NYSE: PEP). We've also seen Roxio's (Nasdaq: ROXI) Napster hit the scene again, hoping to make up for lost time after it switched to more law-abiding gears. We've also seen increasing disinterest in traditional music delivery, epitomized by poor Tower Records (which has since emerged from bankruptcy but still needs to regain edge, nonetheless).

Even more recently, Starbucks (Nasdaq: SBUX) launched its first music café with Hewlett-Packard (NYSE: HPQ), one more step towards a new guard where music isn't just art, commentary, rebellion, or entertainment, it's an effective marketing tool for the masses. Companies are betting that digital music is a quick-and-hip loyalty builder for a consumer audience, especially when targeting youth.

Apple's had a pretty big slice of the legal download market, with a 70% share. Sony's a little late to the game. It's a little surprising, considering Sony brought lightweight music on the go with the Walkman, back when cassette tapes were a hip alternative to those old-school 8-track tapes and vinyl.

According to the news coverage, Apple was courting McDonald's, only to be beaten to the punch by Sony. That hurts -- McDonald's would have been a sweet deal for Apple, in terms of exposure for a musical service. McDonald's pack weight with some 30,000 locations, roughly 47 million customers served daily, the repeat business of its customer traffic, and its appeal to young people.

Despite the fast-food chain's marketing muscle, the partnership is still a rumor, and Sony Connect hasn't even made its grand entrance as of yet. Expect the unexpected as more companies sign on to this new trend of using music for marketing. And keep an eye on all the players as they try to take a bite out of Apple.

Is Apple going to lose its advantage in the digital music space? Talk it over on the Apple discussion board."

My reply....

http://daveola.com/Pages/Stuff/Consumer_Whore.html

Being 22 and not buying RIAA music, I'm obviously not hip or anything. But back in my day (way back then), if McDonald's would have sold music, it would have been the nerdiest thing possible according to their target demographic.

All RIAA stuff aside. Seriously, nobody wants to buy music from McDonalds.

Irony: I haven't bought a CD in 3.5 years. I haven't bought McDonald's in more than one year. One of my "hip" friends is boycotting McDonalds and hasn't bought food there in at least 2 years.

I think they're trying to make a music selling team that everybody can hate for one reason or another.

wait... their signs say over 3 billion served. Now their numbers are at 42 million...

They got hit hard with the lawsuits...

I hope my fries wont have DRM on it.

I agree with everyone here...especially leflaw

I hate MacDonalds...my wife insists on going there occasonally...but I have always hated their food,...tastes like cardboard to me..I like Wendys , Whataburger, or....Burger King best...but, actually, if I want a hamburger, I like to buy the meat and make it myself....my wife likes takeout...I like making it myself...

But, I digress...are anyone of these "legal" download services showing a profit yet?

further cheapening the value of music. pretty soon there wont be any need to buy music it will be given away at the gas pump,grocery store,anywhere you shop

But McDonalds isn't selling music. They're giving it away for free.

Same price as P2P.

thats what i meant george if its free eveywhere then the value is zero

dont get me wrong i like free music as a promotional tool but for them to think that giving it away and me getting it at p2p is any differant something is wrong with that picture

I kinda figured something like this would happen with McDonalds since their recent change of slogan-- "I'm Lovin It" with all this hip-hop and rap music in their commercials. Personally, I don't think "Bow Wow" would be enough to sell me something at McDonalds. The only reason I go there is because it's on the way home from school, and is a quick snack before dinner.

BTW, I'm a dollar-menu freak. Here's what I order EVERY TIME:
1-McValue Fry
1-McChicken Sandwich
1-McValue Drink

Considering I eat there at least twice a week, which equals 6 items a week, times 52 weeks which equals around $312 spent at McDonalds. I'm glad they don't charge $16.98 for a Double-Cheeseburger!

-RocketGib

This dont address the question on what they are going to do about all that lost money. Isnt giving out free MP3's going to hurt someone? Like the artist? I mean no CD is being bought. This isnt the first time it happened either. What about that whole Pepsi Fiasco a few months back. Those morons need to get their heads out of their rear.

mcdonalds is probably paying the labels to do it at a reduced rate of which the artist's get about the same thing they get from p2p

Two things. One I agree with code the only way is to make the burger yourself. Two we (the p2p community) will probably end up taking the blame for any profits lost through all of these promotions.

Remember kids, transfats and DRM are bad for your health.

that's because transfats deteriorate your blood circulation while DRM deteriorates your freedom. McDonalds.. ba ba da ba da.. I'm not loving it

oh god, as lowly as it sounds, i depend on McDonald's so that i may pay my bills. I will be so depressed if I work at a place representing everything i'm against.. its already hard enough.

Of course we take the blame. We always take the blame.

There was an incident a while ago with mcdonalds internet access. Someone was using their public terminal to locate porn. Family setting, you can see the problem.

I know I said I wouldn't keep posting this, but again http://www.newrock973.com/mizzmadness/thefinalround.html and vote for Heather please. Its gotten personal. Someone from IRC has joined on the other side, and I need to defeat them.

McD got sued for having animal fat in the ...let's hope someone sues them for the DRM in the files.

Shmoo

I knew this would McHappen. It is a McLogical extension of what the RIAA has been doing for years: Manufacturing McMusic. So now that McMusic is going to be given away through McDonalds, what's the big McDeal?

lol, I like that McMusic. Quickly made according to a formula by underpaid and untrained lackeys, totally unlike real music, and probably detrimental to your health. Britney McSpears and Justin McTimberlake.

It's hard to imagine a deal like this helping the Recording Industry increase their profit margin. I thought the idea behind iTunes, as well as all the recent lawsuits, was to push people away from the idea of free music. Not only does this (along with Pepsi's promotional give aways) futher drill the idea that downloading music off the Internet for free is okay, but it cheapens the value of the music itself. It's bad enough that superstores like Wal-Mart and Target sell music, but McDonalds?

It's on the radio, it's in TV commercials, it's playing at your local supermarket, it's in your favorite movies, it's under your Pepsi bottlecap, and now it's part of your McDonald's Value Meal?

Why spend money on music at all?...

Nice point. The greatest threat to the labels from the internet is not direct competition, but a change in the percieved value of the product. Data is cheap. Giving it away will make it seem even cheaper, and so people wont spend $15 on a CD.

Careful with the BK fries. They have preservatives to make the potatoes last longer. Those same preservatives you eat later on...

Hell of a promotional tool thats all I am saying.

Geez first they are in the fast food business and now they are in the ice selling business along with their fast food and now it's music sheeeeesh soon they'll just turn into a store might as well seems they are heading that way anyway.

TheSherminator and alll... cheers to you who have boycotted purchasing music for years (i have too.) I also boycott McD's;. Wendys, fuddruckers, BK, and so many others are better (imho). But, i think it sounds like the riaa-label Sony is desperate to get people to sign up online to try out there services and mainly to get people buying singles songs. We've seen the attempt with Pepsi and iTunes. We're gonna see it with Heineken beer in late May thru July where they're offering 2 free RealNetworks songs in specially marked 12-packs. So, let McD's offer this free music with certain meals, let Pepsi give away iTunes songs, let the beer flow for 2 songs, and any other future marketing promotions (coke and musicmatch?); Code's point is strong: is there any profit from these "legal" music services? The Wall Street Journal had an article (sometime in March'04) saying that ~65% of price of online music goes to RIAA. My answer to you Code: probably not; though, Realnetworks and Napster are hoping people will subscribe to premium services.

Hey Hey they're combining crappy food with crappy music man if they could direct their efforts to making something good think of what we could have. Until they do, (not in a thousand lifetimes) crappiness all around!