Sunday, 27 December 2009

Strategic Alliance

Creating strategic alliances between companies and/or individuals enables common goals to be achieved for mutual benefit. You don't have to be a massive organization to benefit from cooperation, sometimes big fish need smaller fish to develop ideas and strategies - get out there find a partner!


During the Summer of 2009, Windows and ReverbNation created a strategic alliance that enabled independent musicians and artists to give away their music for free - but be paid by sponsorship of these songs. This was a radical 'win win' business proposal - the sponsor, Windows, were able to embed advertising into the graphic (cover artwork) of the downloadable mp3 and the artist was paid. The payment per download to the artist was low in comparison to iTunes, Amazon etc. but the value in exposure, reaching a larger market, was generous compensation. These participating artists have been given the opportunity to let their 'Sponsored Song' continue as a free download in a new archive as part of a new initiative called “Playlist 7”

“Playlist 7” is again a joint marketing venture between Windows and ReverbNation but this version of the same idea has a few twists. In principal it follows the same methodology, giving away a pool of free music to whoever is interested. Fans, friends and followers on Facebook, MySpace and Twitter of Windows have special access to a weekly pool of 50 new 'Featured Artists' to sample. Fans can download up to 7 of these songs free, and those downloads help decide which artists’ songs will be available for everyone to download the following week.
Reverbnation have without doubt the best tools and philosophy of all the music 'fan site' websites out there in webland and this partnership with Windows is a true contender to take over the crown in the download wars. This maybe embryonic but this could be the business model that knocks iTunes et al off the top of the ladder and enables the consumer to have free music. This strategy could be indirectly the solution to illegal downloading.

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