Pepsi-Amazon Partner in Free Music Promotion


The Times reports that Pepsico will partner with Amazon to offer - potentially - up to $1 billion in free, DRM music.

The promotion will involve tokens on 5 billion drink containers. Buyers will need to collect 5 to collect free music. However, as the article notes, the take-up rate of these kinds of promotions is low - only around 2%.

Universal and EMI are reportedly the likely candidates to ink the Pepsi deal. The promotion will be tied in with the Super Bowl.

Analysis: Not so long ago, it was Apple-Pepsi giving away iTunes tracks. We're skeptical as to whether this will make even a dent in Apple's iTunes music dominance. A few tracks for each person (which they can play on their iPod, if they're DRM-free), won't drag people away from iTunes or their iPods. They'll take their free music and then return to their iTunes windows.