03. February 2004 · Comments Off on Declining middle-class? Sell cheap in bulk · Categories: Social/Culture · Tags: , ,

Apple and Pepsi got a deal going where Pepsi drinkers may find codes in their Pepsi bottles for a free song download from the iTunes Music Store. Apple and Pepsi will be giving away 100 million songs during this promo zap, obviously aimed at the lucrative teenage music collectors. Pepsi kicked off it’s multimillion dollar ad campaign last super-bowl Sunday.

You may have noticed, there’s also a big deal going on in L.A. where lawyers from the entertainment industry are getting ready to rumble with the attorneys for Grokster and StreamCast in front of a three judge panel from the 9th Circuit Court of Appeals.

Interesting. The super-bowl Pepsi ad actually featured 20 teens who were sued by the Recording Industry Association of America (RIAA) for downloading music. I understand that these kids can pass around a lot of burn, but they spend their money too. I’m sure there are more kids buying CD’s than ever before and I bet most of them are downloading and burning too. I just can’t see how an entertainment industry, fat enough to spend millions on all these second rate artists, can slap 14 year old kids with $3,000 lawsuits. It’s kinda like the big school yard bully pushing around a little girl.

And like hell, ‘they’re loosing money’. What they’re loosing is ‘potential money’. Let’s at least get that straight.

So the recording industry needs to turn the peer-to-peer networks into an advantage. So lawsuits, lobbies and deals. Now we have 99 cent downloads for individual songs. Everyone wins, which is a good thing considering the inevitability of it all. This is the future of marketing. Sell lots and lots of cheap things. This is the way producers will continue to harvest money even after the middle-class has sunken to the lower rungs of jobless despair. When many of these teenagers get older and hungry it will be impossible to get $20 out of them, but you just may be able to suck out 99 cents, not a bad deal for an industry already switching out it’s tackle for smaller fish in much, larger quantities.

Apple-Pepsi Deal

Wired News on the P2P Case

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