Target tests on the internet music service with John Legend album

23 01 2008

Target tests on the internet music service with John Legend album

Posted by: in Companies Competitive Strategy

Filed under: Deals, Products and services, Competitive strategy, Apple Inc (AAPL), Wal-Mart (WMT), Amazon.com (AMZN), Target Corp. (TGT), Sony Corp ADR (SNE), Technology

Billboard reported yesterday that Target Corp. (NYSE: TGT) has entered a “special promotion” with Sony BMG, owned by Sony Corp. (NYSE: SNE) and Bertelsmann Music Group, to launch a digital music service offering high quality MP3 files for just one artist and one album: John Legend and his Live from Philadelphia album. The album comes without the anti-piracy Digital Rights Management software and sells for $10; there’s no option to buy single tracks. The CD version of the album is currently available at Target, as an “only at Target” special.

Song BMG seems ready to make the headlong entrance into high quality MP3 sales, even if this deal is a special promotion for an album only available at one retailer. Target is one of the limited companies also offering Sony BMG’s new album cards that let buyers download high quality DRM-free MP3s. Sony BMG also entered a new agreement with Amazon.com (NASDAQ: AMZN) last week to sell the same quality tracks in the new MP3 store the on the internet retailer has opened.

An interesting aspect of this promotion is that the album in question is available “only at Target” in both physical and now digital formats. This isn’t an unfamiliar method of selling an album: the Eagles’ Long Road Out of Eden was only released in Wal-Mart (NYSE: WMT) stores and on the company’s website. Previous albums released in only one physical retailer also saw release in various digital stores, like Collective Soul’s Afterwords, released at Target and in Apple (NASDAQ: AAPL)’s iTunes Store. The verdict on this method is quite good, after Billboard chart regulations were changed in late October, which allowed the Eagles’ album to hit number one above the most current Britney Spears release, which was available in numerous outlets and on the internet.