Published:
27-Aug-08
Nectar Digital Music Store will allow loyalty card holders to redeem their Nectar points by purchasing DRM-free music. Operated by Loyalty Management Group (a subsidiary of Groupe Aeroplan), Nectar loyalty card is used by approximately 50 per cent of UK households and allows collection of redeemable reward points in a number retail outlets including Sainsbury's supermarket chain and BP petrol stations.
The new music service will offer a catalogue of over 1m tracks from three major labels (Warner Music Group (WMG), EMI, Sony BMG) and the Orchard, a digital music aggregator and distributor for independent labels. As part of a special offer, until October 31 customers will be able to download 20 songs for 3,000 points (equivalent of £0.75 per song according to the company). Otherwise, bundles of 30, 40, and 50 songs will be available for 5,500, 7,200, and 8,900 Nectar points respectively (equivalent to about £0.9 per track). The service was developed by Hip Digital Media, a Canadian digital music solutions company specializing in promotional campaigns.
Our take...
Nectar Digital Music Store will essentially act as a promotional tool for the Nectar card widening the range of redeemable items. The move is an extension of a strategy trialled by Groupe Aeroplan Inc in Canada. Aeroplan Music Store, also powered by Hip Digital Media, was launched in September 2007 and allows customers of Air Canada airlines and a number of other participating companies to redeem their 'miles' loyalty points by downloading music. Although no details on the uptake of this service in Canada have been disclosed, the expansion of the strategy to the UK suggests that the proposition is viable.
Significantly, Nectar Digital Music Store is the first UK outlet to distribute music in MP3 format from Sony BMG, the last of the four Major Labels to move away from DRM in the UK. With no UK music outlet offering DRM-free music from all four Majors, Nectar Digital Music Store is now one of the two UK outlets to distribute MP3s from three major labels (7digital.com currently offers tracks from Universal Music Group (UMG), EMI and WMG).
UK,
