Product (RED), which we’ve covered before, announced a new offering yesterday designed to create a steady stream of donations for The Global Fund through a music subscription service. The yet-to-be-named service will offer consumers, for $5.00 per month, access to 3 new pieces of exclusive content each week (two of them digiatl song downloads). Half of the subscription revenue will go directly to The Global Fund, while the other half will go to the artists and record labels who contribute content. From the New York Times:
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.
The best part of this new offering, which will launch in September, is that it’s helping create a steady stream of donations for AIDS charities associated with The Global Fund. At the same time, (RED) is gaining donations without necessarily increasing the physical consumption of products, which it has been criticized for in the past.
Additionally, the service will be a good way for consumers who are interested in discovering new music do so while also helping them contribute to a good cause (though some might still argue that the $5/month donation should be given directly to The Global Fund rather than being used to get something in return).
While we’ll be eager to see how this new offering is received in the marketplace, it’s good to see that (RED) is constantly looking for new and different ways to connect with consumers beyond its existing lineup of Product (RED) goods.