Monday, July 7, 2008

U2's Bono Launching Online Music Service to Benefit Aids in Africa

The music business is known for supporting causes with events like the Live Aid and Live Earth concerts, which generate lots of money and publicity for a relatively short time. But on Monday (RED), a nonprofit organization that arranges for companies to contribute a share of profits on certain products to fight AIDS in Africa, is starting a digital music service for that purpose, and it plans to operate for the long haul. The new venture has already arranged to release new songs from U2, Bob Dylan, Elvis Costello, Elton John, Emmylou Harris and Death Cab for Cutie. The still-unnamed service, which is scheduled to start in September, will deliver customers three new pieces of exclusive content a week for a monthly fee of $5. Half of that money will go through (RED) to the Global Fund, and the other half will go to the artists who contribute songs and to their record companies. As with (RED)’s branded products, like a special iPod and Motorola phone, companies will sacrifice part but not all of their profits, and consumers will know that some of the money they spend goes to the AIDS-in-Africa cause. Each week (RED)’s service will deliver two songs in MP3 format, one from a superstar act like U2, whose frontman, Bono, was a co-founder of (RED), and one from a less established artist. The third piece of content will be a “crackerjack surprise,” a song, video or short story. The idea is to appeal to Internet users who are interested in music but alienated by commercial radio or the chaos of some online music sites.
http://www.nytimes.com/2008/06/30/arts/music/30red.html?ref=business

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