Cheetos, Slurpies and Music Cards

Joe Wilcox | June 08, 2004, 08:25 AM

I'm sometimes amazed at what I can buy at the local 7-Eleven down the block from my house. From greasy chili dogs to phone cards (for cell and landlines), there's an oddball collection of goods to grab on the run.

Last week, 7-Eleven started offering with Slurpees codes for redeeming ringtones, digital singles from MusicMatch and other goodies. Today, MusicMatch announced 7-Eleven would carry MusicMatch 10-song gift cards, which sell for $9.90 a piece. Impulse buyers beware: You can now pick up music for the kiddies, along with the Cheetos, Pokemon cards and candy.

I'm fascinated by how the different online music stores use promotions to generate brand-awareness and sales. Apple has teamed up with "W" hotels for iTunes Days, while in Australia is giving away iPods as part of a Pepsi promotion. Apple, MusicMatch and Napster all offer gift cards at retail.

These promotions are as much about raising music store awareness as selling music, which is important in the current either-or digital download market. If Uncle Jack picks up Dew and MusicMatch card for niece Jenny, she's got a problem with the redeemable songs if Apple's iPod is her main music device. My report, "Protected Audio Content: Consumers, Vendors Line Up Behind Either Apple or Music," looks at the problem of incompatible file formats and offers vendors best practices for dealing with the situation.

By the way, Patti Freeman Evans is JupiterResearch's retail expert.