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McDonald's Denies Deal With iTunes

fdiv_bug writes "Turns out, according to a press release, that the iTunes Music Store/McDonald's deal mentioned earlier today was only a rumor. A swing and a miss for the New York Post." It sounded pretty plausible, even if the cost was roughly 50% more than McDonald's usual yearly advertising expenditures.

40 of 170 comments (clear)

  1. Maybe this can herald a new way to .... by i_want_you_to_throw_ · · Score: 5, Funny

    do deals? Announce a deal idea on /., watch the community debate it, get a bunch of ideas from it. Free brainstorming from the /. community.

    1. Invent boy band

    2. Tie download of boy band song to Happy Meals

    3. Profit!

    1. Re:Maybe this can herald a new way to .... by Frymaster · · Score: 4, Funny
      Free brainstorming from the /. community.

      ah yes, "news for marketing professionals,"

      if your focus group is slashdot you're in serious trouble, my lad.

    2. Re:Maybe this can herald a new way to .... by dukeluke · · Score: 3, Interesting

      Shucks!

      I had just got done discussing this with a friend at class tonight too. After I explained it to him - yeah, we both kinda looked at each other and went REALLY?. A billion songs for a billion dollars? - Not even Mc Donald's is stupid enough to pay for that many songs - over half of which wouldn't even get redeemed...

      Pity though really - this is phenomenal advertising for i-Tunes & a great business proposition for McDonald's - they should really look into it - but maybe not at a billion songs or so (that's a lot of music!)

    3. Re:Maybe this can herald a new way to .... by tmark · · Score: 5, Funny

      if your focus group is slashdot you're in serious trouble, my lad.

      No kidding. If McDonalds really wanted a promotion to get slashdotters, they should offer trading cards of anime girls and a wad of kleenex with every happy meal.

    4. Re:Maybe this can herald a new way to .... by `Sean · · Score: 2, Funny
      1. Invent boy band
      Du Jour means friendship! Du Jour means seatbelts...
    5. Re:Maybe this can herald a new way to .... by ashitaka · · Score: 5, Funny

      "a wad of kleenex..."

      Somehow the term "Happy Meal" just took on a whole new sinister meaning...

      --
      If you don't want to repeat the past, stop living in it.
    6. Re:Maybe this can herald a new way to .... by DrEldarion · · Score: 2, Funny

      if your focus group is slashdot you're in serious trouble, my lad.

      Unless you're selling Linux boxes with Natalie Portman decals on the side.

    7. Re:Maybe this can herald a new way to .... by leviramsey · · Score: 2, Insightful

      Perhaps only pay for the songs that are actually redeemed...

  2. Not so fast... by corebreech · · Score: 5, Funny

    I happen to know that the deal was for real, but that the contract was stored on an external FireWire drive that was connected to a iBook running Panther, which is the same thing as saying it was deleted.

    (or was it lost when saved using Panther's new FileVault feature, which acts as an auxiliary trash can? To be honest, I forget now.)

  3. Damn... by GregThePaladin · · Score: 5, Funny
    That might have gave me a reason to eat sometrhing other than ramen.

    Not that McDonalds is much better. Or any better, actually.

  4. A Non-Denial Denial by GabrielF · · Score: 5, Insightful

    This was a definite non-denial denial. "There are no agreements to announce" doesn't say anything about agreements under consideration, etc.
    Also, I seriously doubt that McDonalds would pay $1 billion for $1 billion songs, first there's gotta be a volume discount in the billions, second, not every song is going to be redeemed so it doesn't make any sense that they would pay for the songs that don't get bought.

    1. Re:A Non-Denial Denial by dbirchall · · Score: 4, Insightful
      It's such fun to watch people waffle between "this is the unadulterated truth" and "this is completely false" when something is merely unconfirmed.

      (Okay, it's not fun. Wake me when it's over.)

    2. Re:A Non-Denial Denial by slagdogg · · Score: 3, Interesting

      ... there's gotta be a volume discount in the billions

      McDonald's would have to negiotiate that with the labels directly, most likely. I'm sure Apple would be happy to break even on the deal, just for the promotion and getting people accustomed to building their music libraries in iTunes. However, according to most industry estimations Apple pays ~$0.70 US to the appropriate record label (for major label content) for each sale, so any volume discount they give would have to be at or around that price. The record labels would be wise, in my opinion, to sell these tracks to McDonald's / Apple for a reduced rate, say $0.40 US. While this lowers margins for everyone involved, it is great marketing for McDonald's, Apple, and those pesky labels. I look forward to this deal working out, it would be even bigger than the Pepsi deal for educating the public on the value of legal digital music.

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      (Score:-1, Wrong)
    3. Re:A Non-Denial Denial by silicon+not+in+the+v · · Score: 2, Insightful

      Yeah, when you read the original story, it has a very suspicious line: "A spokesperson for Apple declined comment, and a representative of McDonald's was unavailable for comment."

      So, in a supposed agreement between two companies, neither one will confirm it. This is worthy of printing because.....???

      --
      We may experience some slight turbulence and then...explode. -Capt. Mal Reynolds
  5. Not a very strong denial by LoadStar · · Score: 4, Informative

    While it's hard to tell from a press release that's been groomed by a PR department of a major international corporation, I still sense that this isn't a very strong denial.

    All the press release says is that they haven't announced anything yet, and that the reports are speculation. (This is something we all knew ANYWAY.) This could've been released to deflate expectations a bit before the real announcement.... or it in fact could be that they have no plans to do the iTMS deal.

    In either case, I'm not getting my hopes up, but then again, I didn't have my hopes up when the rumor first floated. I figured that if the deal would happen, it probably wouldn't happen right away.

    1. Re:Not a very strong denial by squaretorus · · Score: 2, Informative

      Leak
      Media speculation
      Soft denial
      More media speculation
      Harder ambiguous denial
      Yet more media speculation
      Leak a single detail
      Lots more media speculation
      Court injunction
      LOTS of media speculation and sunday paper features
      Announce deal
      Lots of 'we fucking knew it' self congratulatory media coverage

      Its 'cheap PR 101' guys!!

  6. I want my WWN! by SexyKellyOsbourne · · Score: 2, Funny

    If Slashdot is going to start posting erroneous stories from tabloids such as the New York Post, they should instead post stories from the Weekly World News. I don't believe what a newspaper says unless it has BatBoy endorsing it!

    New today: litterboxes for humans!

    http://www.weeklyworldnews.com/news/index.cfm

  7. Re:Scary footage...children look away! by MoronGames · · Score: 4, Funny

    Ergh! I started playing it and I didn't know I had my speakers up so loud. The pain!

    --
    hey!
  8. Tomorrow's headline by rifftide · · Score: 3, Informative
  9. What a total waste of time! by Basehart · · Score: 5, Funny

    I've been at the counter of my local McDonalds since reading the press release, waiting to get my free iTunes, and now I stink of grease!

    Thanks Apple!

  10. Silly New York Post... by AvantLegion · · Score: 5, Funny
    ... they're trying to copy the Times, but they obviously haven't figured out the difference between fabricating stories and just plain fucking up.

  11. Oh, well... by Joey+Patterson · · Score: 3, Funny

    At least we can still dream about Superdriving our combo and ordering a Big iMac and files to go with it.

  12. Good ploy McDonalds by Neo-Rio-101 · · Score: 3, Interesting

    I think everyone would have to wonder if McDonalds just pulled this stunt to get some free publicity. 1. Pretend you're being a nice company and deal out free music 2. Deny it, and save yourself the money. 3. Create media attention to suck in everyone 4. ??? 5. Profit!

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    READY.
    PRINT ""+-0
  13. Pure speculation by herrvinny · · Score: 3, Insightful

    DES MOINES, Iowa (Dow Jones)--McDonald's Corp. (NYSE:MCD - News) characterized a published report that it plans a massive digital song giveaway promotion as "pure speculation."

    It's "pure speculation". Notice they didn't say anything against/for it. Speculation is a very neutral term. Merriam Webster says:

    Speculation: an act or instance of speculating

    And speculating means: to meditate on or ponder a subject

    McD is still WORKING ON IT! Doesn't mean they've decided one way or another, it's just that they're thinking about IT! Before /. issues a retraction, try RTFD (Reading the F**king Dictionary). Can we set up some kind of dictionary fund for /. editors? Like this or this?

  14. So, that that then... by EverDense · · Score: 5, Funny

    The age old question has just been answered.
    Ronald McDonald DOES read SlashDot.

    --
    http://jesus.everdense.com/
  15. Dodgy marketing by Nonki · · Score: 2, Interesting

    Billion-dollar deals don't just poof out of thin air, there probably is something behind this. All they said is that there is no agreement right now, if they had no plans, they would probably say more than that. It does strike me as a bit odd, however, that they would buy these songs at-cost, and give them away as a marketing campaign. But Pepsi did it so maybe its not so far-fetched.

    One more thing...McDonalds "continues to aggressively pursue bold new initiatives in the areas of music, sports, fashion and entertainment..."

    Maybe I'm just old-fashioned, but shouldn't McDonalds concentrate on making decent food before they get carried away with music and fashion? Maybe if they scrapped the wafer-thin burgers more people would go there.

  16. Healthy Alternative by speed-sf · · Score: 2, Funny

    well, it seemed like a good idea, then Apple was worried they'd get sued for making people fat.

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    All your database are belong to us
  17. That is the beauty of it. by mindstrm · · Score: 2, Interesting

    The incremental cost to give away the songs is negligible.. it's digital.

    IT works for both companies: Think of the extra exposure it would give itunes.... McDonalds is HUGE.

    If MCDonalds does it... everyone on earth will hear about Itunes, and inquire as to what it is, etc.

    1. Re:That is the beauty of it. by Nonki · · Score: 3, Informative

      The cost would be negligible if it worked like that, but what Pepsi did, and what McDonalds is preported to do, is pay for the songs just as everyone else with no discounts.
      Both Pepsi and McDonald's are paying Apple's retail price of 99 cents per song, sources say.
      This would be $1 billion dollars. You aren't paying for the mp3, you are paying for the liscence to have it. Although to a conglomerate like McD's maybe a billion dollars is negligible.

    2. Re:That is the beauty of it. by kmilani2134 · · Score: 2, Interesting

      McDonald's sales have been in a slump over the last couple of years. They and other fast food companies are certainly looking for a way to boost sales. Doing an iTunes promotion would be brilliant.

      --
      Those who trade freedom for security will lose both, and deserve neither" -- Ben Franklin
  18. Re:Scary footage...children look away! by Ridgelift · · Score: 2, Informative

    Informative?! Hey, it was supposed to be funny! Man, the day my jokes begin educating people is the day the world's gone completely to hell.

  19. McDonald's New Deal by Anonymous Coward · · Score: 2, Interesting

    Hey, I don't know where you heard about McDonalds dealin in iTunes, but here - today - in Raleigh, NC, McDonalds opened a McCafe, an alternative to Starbucks for those who want fancy coffees, pastries, and deli sandwiches. Oh, and the whole place is wifi-enabled for free to internet surfing or just small computer errands.

  20. Original Steve Ballmer video by exhilaration · · Score: 2, Insightful
    I found it, view the video here.

    Also look at this hilarious picture.

  21. people like ipod but...... by hhknighter · · Score: 2, Funny

    as great as most people think of the ipod, I can guarantee that it doesn't have a taste modifying feature.

    I would take 40 gigs of songs (hmm, good ones, so really, around 15 megs), yes, but not with 40 pounds of grease.

    And in other news, man won $1 bill worth of songs stuck inside a local McDonalds.

  22. The WiFi / iTunes connection by Infonaut · · Score: 4, Insightful
    It might have actually worked for McDonald's. They're not exactly conquering the world these days, and they definitely need a means of bringing people into the stores.

    WiFi alone? Eh.

    WiFi and free iTunes? Now there's something.

    Of course, who wants to bring their computer into a greasy McDonald's and get Secret Sauce all over it while surfing the 'Net. Ew... forget I went there!

    Starbucks. Those guys would do well with an iTunes promo. They've already rolled out the WiFi part of the equation.

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    Read the EFF's Fair Use FAQ
  23. Not So Far-Fetched by QGambit · · Score: 5, Insightful

    While I agree that the the $1 Billion figure is probably wishful thinking on the Post's part, I will say that this deal does strike me as VERY do-able. McD has given away music CDs for years during various promotions, as have other fast-food chains. I can see music giveaways in digital form taking hold very quickly.

    Here is an example: Lets say the real deal is $100 Million (just like the Pepsi deal so it is not out of the realm of possibility). McD now has a block of songs that it can do whatever it wants with. If McD has a promotion where they would normally be giving away copies of a CD, they could replace it with a free download of the album from the iTMS. Apple could restrict the redemption so that only the designated album can be downloaded (making success/failure analysis quite easy).

    If the promo succeeds, everyone is happy. However, if the promo fails (cuz the music sucks, for example), they would normally have piles of CDs that would just get trashed. Money wasted on production, storage, transportation, and destruction/recycling. With iTMS, they can just keep the unused downloads and repurpose them for a future event, such as a prize in the Monopoly game they run every so often.

    In the end, McD has only paid for what it used. Very economical.

  24. How much money, really? by LostCluster · · Score: 3, Insightful

    $1 billion seems out of line. McDonald's only is giving away $55,283,390 worth of Best Buy money, not all of which will be turned in undoubtably, in the current Monopoly Best Chance Game promotion. $54,983,390 of that will be in the form of 54,983,390 $1 pieces.

    When you add it all up, there's only 55,000,000 Best Buy pieces in cirulation... and that's from a pretty full tilt campaign by McDs standards. Therefore, I think that's the reasonable cap on how many songs total McDs could give away if such a promotion happens.

  25. Re:NY Post is Rupert Murdoch's rag? by Vellmont · · Score: 2, Informative


    but it also owns some of the most respected including Fox News and Sky News

    Umm.. Fox News is respected? That's news to me. Somehow falsely reporting that WMD have been found in Iraq every 5 minutes doesn't get you a lot of respect. Neither does threatening to sue The Simpsons for making fun of Fox News. Or how about suing Al Franken for trademark violations of the phrase "Fair and Balanced"? Fox News is many things, but a respected news organization is not one of them.

    I know about nothing about Sky News, but given Murdochs record I'd be awfully surprised if they had a shill of credibility.

    --
    AccountKiller
  26. Just waiting for that headline.... by Channard · · Score: 5, Funny
    'Hamburglar arrested for file sharing.'

    'In a dawn raid on McDonaldstown by the RIAA, fictional corporate character Hamburgler was placed under arrest for downloading a number of copyrighted songs. Currently languishing in federal 'pound me in the ass' psison, Hamburglar was reported to have said in response to the allegations 'Robble robble. Robble robble robble robble robble. Robble!' No court date has yet been set.'

  27. Big $$$ in WiFi @ Mickey D's by MisterSquid · · Score: 2, Insightful

    Some time ago, the news media began reporting that McDonald's was to going to provide wireless access in their restauraunts. That service, according to McDonald's itself, would in some places be for pay.

    McDonald's giveaway will promote its for-pay WiFi access. iTMS is the market leader of downloaded music with, according to a 5 November analyst conference call held by Apple, over 80% market share. McDonald's will be able to "give away" US $0.99 tracks to, in some cases, sell US $2.99/day WiFi access.

    I wonder if some of those Happy Meal freebies will include a day's worth of free WiFi.

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    blog