Apple, Coke to Mix Tunes With Drinks

Apple Computer (Nasdaq: AAPL) and Coca-Cola have teamed up to give away about 70 million songs from the iTunes music store via a new Coke-branded music Web site set to launch in several European countries next week.

Live concerts to promote the launch -- portions of which will be available on the new site and on iTunes as podcasts -- are scheduled in the UK, Germany, Austria and Switzerland.

The Apple, Coca-Cola pairing follows the demise of the MyCokeMusic service, which was early to market when it launched in Europe in 2004 but failed to take off.

No Fizz in MyCokeMusic

iTunes has been the clear dominator of the digital download music world, having sold more than 200 million songs in Europe since its launch -- 150 million in the last year alone -- while MyCokeMusic sales were evaporating.

Coca-Cola is bubbling over with enthusiasm for the new arrangement, which echoes a previous deal Apple struck with PepsiCo to distribute about 100 million free songs in the U.S.

"Together we are creating a unique and exciting platform that gives young people a voice and allows them to refresh their music experience every day," Dominique Reiniche, president of Coca-Cola European Union Group, said of the deal.

Not All Smooth Sailing

Coke will distribute 70 million song codes inside packages of Coca-Cola and Diet Coke in the UK that can be redeemed for dowloads at the iTunes store, where music tracks usually sell for US$1.47 (79 pence) each.

The company plans to give away about 67,000 songs from the iTunes catalog, along with 1,500 iPods, in its Germany promotion.

While there's no question Apple has been shining in the online music world, the company has faced some potential stumbling blocks in recent months. Lawmakers in France as well as in Scandinavia have been challenging the lack of interoperability between Apple's iTunes and iPod combo and other music players and download services.

France, in fact, recently adopted legislation that could have required Apple to open its technologies to competitors, but some provisions of the new law have been found unconstitutional.

The interoperability issue has yet to be resolved in Norway, Sweden and Denmark.