Loudbytes Integrates Digital and Retail

Holly Richmond
Monday, Jun 27, 2011 at 11:00 AM
Thanks to Loudbytes, customers can now buy digital music in stores.

Do you still buy a CD from an actual record store (!) every once in a while, only to go home, rip it to your computer, and let it collect dust? Digital music distribution company loudbytes just announced a new service that cuts out the dusty, unused CD part. The company's new service, "Crazy Funnel," works through point of sale systems, enabling retailers to sell digital music in stores.

So how's it work? Customers can buy digital music at checkout, with a download code and instructions printed directly on their receipts. After redeeming the download code on loudbytes' website, they get MP3 files of the purchased music. Loudbytes Founder and CEO Ruben Lozano points out that selling digital music eliminates the costs associated with inventory of physical CDs, saying in a press release, "We bring the flexibility and efficiencies online retailers enjoy to the traditional retail environment."


Bridging the physical and digital worlds? Sounds a lot like Tag! So it makes sense that loudbytes is also partnering with Tag on store displays. Customers who scan the Tags can access music and video snippets. Microsoft Tag General Manager Aaron Getz said, "Now with the scan of Tag on a product through the ‘Crazy Funnel’ service, consumers will be able to unlock and download licensed music, videos and other digital experiences.”

Sun Diego, a Southern California retailer, is the first to integrate "Crazy Funnel" technology into its nine stores this month. It'll be selling this year's Warped Tour music compilation, and scanning a related Tag will give shoppers access to the track list and other album info. The La Jolla Group (which owns brands like O'Neill and Rusty) and JDS Solutions (Volcom, New Balance, North Face) will also be using the "Crazy Funnel" technology.

What do you think of selling digital music in physical retail stores? Let us know in the comments below or on Facebook or Twitter.



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