Posted on 12/15/2002 3:41:36 PM PST by new cruelty
Here is the deal:
Gateway spins Pressplay service on PCs
By Reuters
December 5, 2002, 10:11 PM PTComputer maker Gateway on Friday announced a deal with online music provider Pressplay to load its PCs with 2,000 songs from music stars such as Eminem, Bruce Springsteen, the Dixie Chicks and Frank Sinatra.
The deal with Pressplay, a joint venture between Vivendi Universal and Sony, capped a turbulent week for Gateway, which saw its stock fall 17 percent Thursday after the troubled PC maker warned that fourth-quarter revenue might not measure up to expectations.
The news came after three consecutive quarters of losses at the Poway, Calif.-based computer maker, which has suffered from weak demand and stiff competition from rivals such as Dell Computer.
Under the Pressplay deal, Gateway consumers can access the Pressplay service and features in several ways, including a 90-day free subscription to the service that contains 2,000 songs preloaded and available for streaming and downloading.
By loading it on a computer, consumers, especially those using dial-up connections, will save weeks of downloading time, said Michael Bebel, chief executive officer of Pressplay.
Other Pressplay plan options will also be available, some to be sold separately in hard-drive packages.
Gateway signed another deal with Pressplay rival Listen.com's Rhapsody a few weeks ago, marking the first distribution pact between a computer maker and one of a current crop of subscription services, trying to lure customers away from unauthorized song-swap services that have emerged in the wake of now-idled Napster.
Under that deal, buyers of Gateway desktop PCs will get a coupon for one free month of Rhapsody and a demonstration of the service on the PCs.
"The Pressplay deal is significantly different because we're pioneering a way to deliver digital music on the hard drive," said Brad Shaw, a senior vice president for Gateway.
Shaw said the deal would have no impact on the company's fourth-quarter forecast announced earlier this week.
After the free trials, consumers can get the Pressplay service, which provides more than 200,000 songs and additional features, with pricing options starting from $9.95 a month.
"We're now making it possible for people without a broadband Internet connection to get in on the fun of digital music by delivering it to them in a whole new way," said Ted Waitt, Gateway chairman and chief executive in a statement, adding those with broadband will enjoy it even more.
Gateway earlier this year sparked the ire of the music industry by running TV ads that showed Waitt and a cow--the company's mascot--singing along to a homemade CD, directing viewers to a Web site that encouraged them to "protect their digital music rights."
The ad was construed by the recording industry as an invitation to music fans to join in the fight against Hollywood as technology and media companies locked horns over digital copies of entertainment.
Entertainment companies, burned by piracy and file-sharing services like Napster, have been seeking more control over digital copies of movies, music and TV shows, while tech companies are putting out even more products that encourage customers to "rip" and "burn" entertainment software.
Gateway executives this week said they have always supported legal copying.
Waitt said the Pressplay deal was a great example of the technology and recording industries working together to drive innovation and serve demand for legitimate digital music.
Gateway plans to promote with television, Web, catalog and e-mail marketing
Dude, check again. It looks like it is causing double posting.
Any info on the value priced PC sans monitor? Doesn't really sound like a good deal to begin with.
Some folks have problems with every brand of computer. Or car. Or refrigerator. There is no manufactured product that has absolutely perfect reliability.
In our neighborhood there are more than two dozen Gateways in use (three in my home alone, four in the house across the street). They've all been sold with word-of-mouth advertising about the terrific quality of the machines and service.
I love Gateway service because no matter how stupid you are, you can get endless help and patience from the folks at the other end of the phone. And unlike other manufacturers, they have actual stores you can go into, to experiment, get an estimate on a custom configuration, get service, whine, whatever.
Crying in the Rain, Heart Break Hotel, Tear in my Beer to name a couple
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.