Launching a music label

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Pepsi ads have become synonymous with big name music acts over the past few years: Britney Spears, Beyonce, Madonna and Pink have all been seen on screen at some point, fizzy drink in hand. But rather than pay out the astronomical fees for these stars to plug Pepsi in China, the drinks manufacturer has decided to grow its celebrities from scratch.

Through a partnership with Qun Yin Culture and Entertainment in China, Pepsi has launched its own music label: QMusic. The move follows hot on the heels of P&G starting its urban TAG label and Bacardi signing music act Groove Armada. By owning an act outright, brands save paying out on royalties every time an advert with the act’s tune is played.

Artists that are signed to QMusic will be integral to Pepsi’s marketing in terms of writing songs, appearing in ads and adorning products. The label will also tie in closely with Pepsi’s Battle of the Bands talent TV show in China in which ten bands perform for the public over ten shows; the band with the most votes wins a recording contract on the new Pepsi label.

With the Music industry still reeling from the evolution of the internet and the age of free downloads, brands like Pepsi are beginning to fill the void left by record labels. It is brands these days that have the money, the marketing muscle and the motive for associating themselves with music world. Pepsi may be just the first brand among many to experiment with going down this route.

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