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Coke to launch UK music download service

Coke to launch UK music download service

Coca-Cola Corp. is aiming to enter the growing music download market by launching its own download service in the U.K. in January.

Run by European digital music company On Demand Distribution Ltd. (OD2), the music service will offer 250,000 tracks from over 8,500 artists. Tracks will cost £0.99 (US$1.72) each, Coca-Cola said.

OD2, a London company set up and part-owned by singer Peter Gabriel, offers a "white label" service running online music sites for U.K. and European music businesses, including those offered by Microsoft Corp.'s MSN.com, Tiscali SpA and Virgin Entertainment Group Inc., marketing manager Paul Smith said Tuesday.

All major record labels will be involved with the Coca-Cola site, Smith said. "Given the unprecedented level of support that Coca-Cola's putting into it, the potential customer reach is in the millions," he said.

Coca-Cola and OD2 will split the proceeds from the site on a revenue share model, Smith said, but he would not reveal what percentage OD2 will receive.

Music service users need to be over 18-years-old, since they need a credit card to buy tracks, Coca-Cola said.

Last week, Coca-Cola announced that it had signed a two-year deal to sponsor the UK Music Charts from January and a planned Download Chart.

According to a report by Jupiter Research, a division of Jupitermedia Corp., earlier this year, the online music market could be worth $3.3 billion by 2008.

A preannouncement site, allowing potential users to register, is at http://www.mycokemusic.com.


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