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Pepsi Launches Own Music Label in China

"Forget Michael Jackson," Frederik Balfour blogs. Eight-figure post-mortem deals make that hard to do (see above), but he goes on to discuss PepsiCo plans to create its own rock stars in China and calls it a "pretty nifty business model."

PepsiCo has launched a music label in China that enables it to "groom, produce and ultimately control its recording stars," Balfour writes. The concept is the brainchild of Harry Hui, Pepsi's CMO in China, who invited Balfour to a "Battle of the Bands" reality show Pepsi is producing in Shanghai. Ten bands are competing over 10 shows for the grand prize -- a recording contract on the Pepsi label.

All of the content is controlled by the brand, including a Web site with backstage interviews, gossip and social network. "Pepsi plucks unknown and promising talent, nurtures it, and can capitalize on the musicians' talent to help promote its soft drink brands," Balfour writes approvingly.

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Read the whole story at Business Week’s “Eye on Asia” »

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