McDonald's and Sony are teaming up to offer free music downloads, in a step that analysts said raises questions about fast food chain's long-standing relationship with Walt Disney.
McDonald's will launch a U.S. promotion on June 8, offering customers who buy a Big Mac Extra Value meal an access code worth one free song download at Sony Connect music store. The so-called Big Mac Meal Tracks promotion, which will run for six to 10 weeks, will later expand to Europe, McDonald's said.
The Sony alliance could represent a way for McDonald's to tap in to pop culture without relying on movie tie-ins with Disney. McDonald's still has about two years left on a 10-year promotional agreement with Disney.
Like competing services, Sony Connect lets customers buy songs and download them to portable music players. Customers can also listen to songs that have been copied, or "ripped," from CDs.
McDonald's and Sony were scheduled to announce their partnership on Thursday at a news conference in Los Angeles.
"I think McDonald's is trying to escape what I call the kiddyland box," said Jack Trout, a marketing consultant who heads Connecticut-based Trout & Partners. "I think Disney undermines their strategy for moving to the older set."
Disney said the two deals were completely separate.
"We have an ongoing relationship with McDonald's, and this has nothing to do with our agreement with them," said Disney spokesman John Spelich.
Nearly every major online music store--from Apple Computer's iTunes, RealNetworks' Rhapsody to Roxio's Napster--are forming joint ventures with consumer brands ranging from PepsiCo's Pepsi to UAL's United Airlines.
Apple's iTunes was the first to clinch such a deal, providing Pepsi drinkers with free downloads if they got a bottle cap containing numerical codes.
To date, iTunes has also partnered with Target and Ben & Jerry's, while Sony Connect has partnered with United Airlines.
Since late last year, McDonald's has been trying to revitalize its image with young adults. Its "I'm Lovin' It" global ad campaign, for example, incorporates hip-hop music in its television spots.
"The whole 'I'm Lovin' It' campaign appeals to a different age group," said Bob Goldin, an executive vice president with restaurant market research firm Technomic, stressing that Disney's appeal is more targeted to preteens. "They (McDonald's) needs to find marketing partners that appeal to that."
The Disney deal was reportedly worth $10 million when it was struck in 1996. It was considered a boon to Disney, giving the entertainment company access to customers in McDonald's 13,000 U.S. hamburger stores.
During its annual meeting two weeks ago, Larry Light, McDonald's global chief marketing officer, said that McDonald's and Disney were in discussions about the structure of the remaining portion of the contract.
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