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Bebo
Date.
13 June 2007
Publication.
News
Author.
Balderton

Apple to sell iTunes tracks through Bebo

Apple signs its first distribution deal with a social networking site, as it seeks to extend its dominance in digital music From

Apple has signed a music distribution deal with Bebo, its first with a social networking site, as it seeks to extend its dominance in digital music.

Under the deal, described by Apple as a “super-affiliate” arrangement, Bebo’s 8.8 million users in the UK will be able to buy and download tracks from iTunes, Apple’s online store, without leaving the Bebo site.

Commercial terms of the deal, the product of six months of talks, were not released but iTunes affiliates typically earn a 5 per cent commission on each downloaded track.

Bebo, which is based in San Francisco but counts the UK as its strongest market, hopes to extend the service to the whole of its global audience of about 33 million in coming months.

Its users will pay Apple’s standard prices — 79p for regular iTunes tracks, and 99 p for iTunes Plus tracks, which come free of the controversial digital rights management software designed to safeguard against piracy.

The social networking site was founded in 2005 by Michael Birch, a Briton, and his American wife, Xochi. It currently carries profile pages for some 500,000 musicians, which will now be used to market music.

Apple, meanwhile, will gain access to a highly engaged audience dominated by 13 to 24-year-olds. Each Bebo user spends about 40 minutes on the site per session, making the site one of the "stickiest" in the market.

Users will be offered the chance to preview songs from Bebo profile pages and then buy them — as long as Apple’s iTunes software is already installed on their computer. A schedule of cross promotions will involve Bebo users being given special offers and “free sample” of music to download.

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