---
title: PC iTunes downloads
date: "2003-10-22T12:00:00Z"
categories:
  - links
wp_id: 878
description: I analyzed the economics of Apple’s partnership with Pepsi, which offered 100 million free song downloads. I considered royalty costs versus marketing value, concluding it was a brilliant strategic move by Steve Jobs to drive iTunes adoption.
keywords: [itunes, apple, pepsico, marketing strategy, steve jobs, digital music]
---

[PC iTunes hits 1 million downloads](http://edition.cnn.com/2003/TECH/biztech/10/21/apple.itunes.reut/).

> Apple also announced a promotion with PepsiCo Inc. starting in February in which 100 million winning bottle caps on certain Pepsi drinks grant the winner a free song.

When I read that, I said, "That's 99 million dollars!"\
Then I said, "No, it costs just the royalty... which may be a fixed cost anyway."\
Then I figured, "Lots of people will buy Pepsi. Maybe Pepsi paid Apple for it."\
Smart move, Jobs.