The deal appears to be in response to the failure and closure of download site Mycokemusic. This site, launched in 2004, had some 250,000 songs available, but in a format incompatible with the iPod. Music has long been a promotional battleground between Coca-Cola and arch rival Pepsi, who for years have engaged bands and music celebrities to promote their products. The iTunes / Coca-Cola alliance may be intended to help Coca-Cola maintain their edge in the UK soft-drinks market, a market that is fiercely competitive.
'In 2004, the digital music scene was just developing and the only way for Coke to offer access to music downloads was to open our own store,' ran the statement issued. 'That's not true today and there is no need for Coke to continue to run a store.'
This is, of course, not the first such alliance for iTunes, who previously allied themselves with Pepsi who ran a promotion to give away 100 million songs for free.