Pepsi
In November 1983, one year after "Thriller" was released, Jackson (with his brothers) and PepsiCo struck a $5 million partnership that would shatter the record for a celebrity endorsement deal, link the two entities for a decade and set the bar for every integrated marketing campaign that would follow.
Jackson's managers approached Jay Coleman, founder/CEO of Entertainment Marketing & Communications International, who would eventually broker all three Jackson-Pepsi deals, with the idea of partnering Jackson with a major brand at a firm asking price. Coleman, who had already orchestrated Jovan fragrances' landmark sponsorship of the Rolling Stones' Tattoo You tour, first proposed the idea to Coca-Cola.
"They gave it serious consideration yet couldn't make that leap of faith," Coleman says. "They saw anything they would do with Michael as a more targeted, ethnic campaign."
Coca-Cola offered a $1 million deal that was rejected, and the Jacksons moved on to PepsiCo, where then-CEO Roger Enrico was looking for a big idea to launch his youth-targeted "New Generation" campaign for the brand. "The goal was to make Pepsi look young and Coke look old, and Michael Jackson was in fact the choice of that generation -- he was already the King of Pop, even though he hadn't declared it," Coleman says.
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Michael Jackson and Pepsi in New Deal By SHEILA RULE
Published: February 4, 1992 Hot on the heels of the premiere of his latest video, "Remember the Time," Michael Jackson yesterday announced a new deal with Pepsi-Cola International, a world tour this year and the establishment of a Heal the World foundation to help underprivileged children around the world.
After descending the opulent staircase at Radio City Music Hall to the accompaniment of his song "Black or White," Mr. Jackson joined Pepsi-Cola in announcing the international deal, which the company said was the largest ever between a corporation and a music entertainer.
Dressed in black leather and a red armband, Mr. Jackson said his only reason for undertaking the tour was to "spread the message of global love in the hopes that others, too, will be moved to do their share to help heal the world." He said he hoped the tour would gross $100 million for the foundation by Christmas 1993.
When asked how much money the singer would receive, Peter Kendall, Pepsi's vice president for worldwide marketing, said only, "A lot." Later, a spokeswoman for Pepsi-Cola International said the company had a policy of not discussing financial details.
Pepsi-Cola International said its deal with Mr. Jackson would cover 18 months and would involve his appearances in Pepsi commercials, as well as a tour of Europe, Asia, Australia and Latin America. The schedule has yet to be determined, but Mr. Kendall said the tour would probably begin in Britain in June or July. The United States is not on the itinerary.
Last year Mr. Jackson signed a contract with Sony worth at least $30 million, with an interest in profits from new albums, including his latest, "Dangerous."
Mr. Jackson's video "Remember the Time" -- nine minutes long and set in ancient Egypt, with a cast that includes Eddie Murphy and Magic Johnson -- is set to a song from the "Dangerous" album, which was released in November on Sony's Epic label. The video was broadcast on Sunday night on Fox Television, MTV and Black Entertainment Television. When the video of "Black or White" was broadcast in November, it gave Fox its highest overnight Nielsen ratings ever, an 18.4 rating and a 27 share. A Fox spokeswoman said yesterday that "Remember the Time" weighed in overnight with a 14 rating and 19 share.
The company also sponsored Mr. Jackson's "Bad" tour in 1988 and his "Victory" tour in 1984.
Pepsi-Cola International said it would help Mr. Jackson launch and raise money for his foundation and would sponsor special fund-raising concerts in Eastern Europe and India. At Radio City the corporation gave Mr. Jackson a check for $100,000 toward the foundation.
Mr. Jackson said the Heal the World foundation, named for a song on the "Dangerous" album, would benefit the environment as well as children's charities, including those that fight AIDS and diabetes.
Jackson's managers approached Jay Coleman, founder/CEO of Entertainment Marketing & Communications International, who would eventually broker all three Jackson-Pepsi deals, with the idea of partnering Jackson with a major brand at a firm asking price. Coleman, who had already orchestrated Jovan fragrances' landmark sponsorship of the Rolling Stones' Tattoo You tour, first proposed the idea to Coca-Cola.
"They gave it serious consideration yet couldn't make that leap of faith," Coleman says. "They saw anything they would do with Michael as a more targeted, ethnic campaign."
Coca-Cola offered a $1 million deal that was rejected, and the Jacksons moved on to PepsiCo, where then-CEO Roger Enrico was looking for a big idea to launch his youth-targeted "New Generation" campaign for the brand. "The goal was to make Pepsi look young and Coke look old, and Michael Jackson was in fact the choice of that generation -- he was already the King of Pop, even though he hadn't declared it," Coleman says.
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Michael Jackson and Pepsi in New Deal By SHEILA RULE
Published: February 4, 1992 Hot on the heels of the premiere of his latest video, "Remember the Time," Michael Jackson yesterday announced a new deal with Pepsi-Cola International, a world tour this year and the establishment of a Heal the World foundation to help underprivileged children around the world.
After descending the opulent staircase at Radio City Music Hall to the accompaniment of his song "Black or White," Mr. Jackson joined Pepsi-Cola in announcing the international deal, which the company said was the largest ever between a corporation and a music entertainer.
Dressed in black leather and a red armband, Mr. Jackson said his only reason for undertaking the tour was to "spread the message of global love in the hopes that others, too, will be moved to do their share to help heal the world." He said he hoped the tour would gross $100 million for the foundation by Christmas 1993.
When asked how much money the singer would receive, Peter Kendall, Pepsi's vice president for worldwide marketing, said only, "A lot." Later, a spokeswoman for Pepsi-Cola International said the company had a policy of not discussing financial details.
Pepsi-Cola International said its deal with Mr. Jackson would cover 18 months and would involve his appearances in Pepsi commercials, as well as a tour of Europe, Asia, Australia and Latin America. The schedule has yet to be determined, but Mr. Kendall said the tour would probably begin in Britain in June or July. The United States is not on the itinerary.
Last year Mr. Jackson signed a contract with Sony worth at least $30 million, with an interest in profits from new albums, including his latest, "Dangerous."
Mr. Jackson's video "Remember the Time" -- nine minutes long and set in ancient Egypt, with a cast that includes Eddie Murphy and Magic Johnson -- is set to a song from the "Dangerous" album, which was released in November on Sony's Epic label. The video was broadcast on Sunday night on Fox Television, MTV and Black Entertainment Television. When the video of "Black or White" was broadcast in November, it gave Fox its highest overnight Nielsen ratings ever, an 18.4 rating and a 27 share. A Fox spokeswoman said yesterday that "Remember the Time" weighed in overnight with a 14 rating and 19 share.
The company also sponsored Mr. Jackson's "Bad" tour in 1988 and his "Victory" tour in 1984.
Pepsi-Cola International said it would help Mr. Jackson launch and raise money for his foundation and would sponsor special fund-raising concerts in Eastern Europe and India. At Radio City the corporation gave Mr. Jackson a check for $100,000 toward the foundation.
Mr. Jackson said the Heal the World foundation, named for a song on the "Dangerous" album, would benefit the environment as well as children's charities, including those that fight AIDS and diabetes.
The Pepsi Decade
.BENEFITS OUTWEIGHED COSTS
PepsiCo and its ad agency, BBDO, also hesitated at the possible cost, but Coleman's proposal proved too appealing. "I pitched it as a multifaceted marketing campaign with lots of touch points: big-time advertising, tour sponsorship, logos on the cans, displays in the supermarket and PR-friendly events," Coleman says. When Jackson suggested using his song "Billie Jean" as the jingle (with the rewritten chorus, "You're the Pepsi generation/Guzzle down and taste the thrill of the day/And feel the Pepsi way"), Pepsi was sold.
So pervasive was the first campaign, which ran from 1983 to 1984, that the stories surrounding it have taken on the status of legend: the infamous accident that set Jackson's hair on fire and resulted in his rumored first cosmetic surgery, the star's desire to hide his face behind sunglasses for a "less is more" effect, and so on.
But its impact on the music and advertising industries was equally widespread. "It was definitely game-changing," says Brian J. Murphy, executive vice president of branded entertainment at TBA Global. "You couldn't separate the tour from the endorsement from the licensing of the music, and then the integration of the music into the Pepsi fabric. If you pulled any one of those pieces apart, it really took away from what the campaign was all about."
Jackson's creative input also was groundbreaking. "Michael was very much involved in the execution of everything, from the choreography to the location scouting," says Bob Giraldi, who directed Jackson's most iconic Pepsi commercials -- from the very first "street scene" spot, featuring kids dancing with their idol, to the "Bad" series that amounted to a mini action movie -- as well as the "Beat It" music video. "He really knew what worked."
A DEFINING PARTNERSHIP
Jackson had a deal with the athletic footwear brand L.A. Gear, other big endorsements were for international TV spots for Suzuki, Sony and Esonic.
Pepsi, meanwhile, had sales of $7.7 billion in 1984 and an increase in market share while Coca-Cola's dropped, according to financial reports at the time. Pepsi signed a second, $10 million deal with Jackson in support of his "Bad" album and tour through 1987-88. Where Jackson's initial deal with Pepsi was limited to the United States, this one was global, covering 20-plus countries during the singer's world tour.
The trend of Pepsi signing music stars as spokespeople has continued into the present day, with Lionel Richie, Madonna, Beyonce and Britney Spears all lending their name to the brand. Corporations of all stripes now align themselves frequently with pop artists, but with music and advertising becoming increasingly fragmented, Jackson's deals with Pepsi will likely remain the industry standard-bearer.
Murphy says that so-called 360 agreements, or multiple-rights deals -- in which recording artists share not just revenue from album sales but concert, merchandise and other earnings with their label in exchange for more comprehensive career support -- "are very effective, but whether they'll ever become that front-page newsworthy really depends on the level of wattage of the artist. I don't know that we'll see something like this again."
PepsiCo and its ad agency, BBDO, also hesitated at the possible cost, but Coleman's proposal proved too appealing. "I pitched it as a multifaceted marketing campaign with lots of touch points: big-time advertising, tour sponsorship, logos on the cans, displays in the supermarket and PR-friendly events," Coleman says. When Jackson suggested using his song "Billie Jean" as the jingle (with the rewritten chorus, "You're the Pepsi generation/Guzzle down and taste the thrill of the day/And feel the Pepsi way"), Pepsi was sold.
So pervasive was the first campaign, which ran from 1983 to 1984, that the stories surrounding it have taken on the status of legend: the infamous accident that set Jackson's hair on fire and resulted in his rumored first cosmetic surgery, the star's desire to hide his face behind sunglasses for a "less is more" effect, and so on.
But its impact on the music and advertising industries was equally widespread. "It was definitely game-changing," says Brian J. Murphy, executive vice president of branded entertainment at TBA Global. "You couldn't separate the tour from the endorsement from the licensing of the music, and then the integration of the music into the Pepsi fabric. If you pulled any one of those pieces apart, it really took away from what the campaign was all about."
Jackson's creative input also was groundbreaking. "Michael was very much involved in the execution of everything, from the choreography to the location scouting," says Bob Giraldi, who directed Jackson's most iconic Pepsi commercials -- from the very first "street scene" spot, featuring kids dancing with their idol, to the "Bad" series that amounted to a mini action movie -- as well as the "Beat It" music video. "He really knew what worked."
A DEFINING PARTNERSHIP
Jackson had a deal with the athletic footwear brand L.A. Gear, other big endorsements were for international TV spots for Suzuki, Sony and Esonic.
Pepsi, meanwhile, had sales of $7.7 billion in 1984 and an increase in market share while Coca-Cola's dropped, according to financial reports at the time. Pepsi signed a second, $10 million deal with Jackson in support of his "Bad" album and tour through 1987-88. Where Jackson's initial deal with Pepsi was limited to the United States, this one was global, covering 20-plus countries during the singer's world tour.
The trend of Pepsi signing music stars as spokespeople has continued into the present day, with Lionel Richie, Madonna, Beyonce and Britney Spears all lending their name to the brand. Corporations of all stripes now align themselves frequently with pop artists, but with music and advertising becoming increasingly fragmented, Jackson's deals with Pepsi will likely remain the industry standard-bearer.
Murphy says that so-called 360 agreements, or multiple-rights deals -- in which recording artists share not just revenue from album sales but concert, merchandise and other earnings with their label in exchange for more comprehensive career support -- "are very effective, but whether they'll ever become that front-page newsworthy really depends on the level of wattage of the artist. I don't know that we'll see something like this again."
The Beatles Catalouge
PepsiCo and its ad agency, BBDO, also hesitated at the possible cost, but Coleman's proposal proved too appealing. "I pitched it as a multifaceted marketing campaign with lots of touch points: big-time advertising, tour sponsorship, logos on the cans, displays in the supermarket and PR-friendly events," Coleman says. When Jackson suggested using his song "Billie Jean" as the jingle (with the rewritten chorus, "You're the Pepsi generation/Guzzle down and taste the thrill of the day/And feel the Pepsi way"), Pepsi was sold.
So pervasive was the first campaign, which ran from 1983 to 1984, that the stories surrounding it have taken on the status of legend: the infamous accident that set Jackson's hair on fire and resulted in his rumored first cosmetic surgery, the star's desire to hide his face behind sunglasses for a "less is more" effect, and so on.
But its impact on the music and advertising industries was equally widespread. "It was definitely game-changing," says Brian J. Murphy, executive vice president of branded entertainment at TBA Global. "You couldn't separate the tour from the endorsement from the licensing of the music, and then the integration of the music into the Pepsi fabric. If you pulled any one of those pieces apart, it really took away from what the campaign was all about."
Jackson's creative input also was groundbreaking. "Michael was very much involved in the execution of everything, from the choreography to the location scouting," says Bob Giraldi, who directed Jackson's most iconic Pepsi commercials -- from the very first "street scene" spot, featuring kids dancing with their idol, to the "Bad" series that amounted to a mini action movie -- as well as the "Beat It" music video. "He really knew what worked."
A DEFINING PARTNERSHIP
Jackson had a deal with the athletic footwear brand L.A. Gear, other big endorsements were for international TV spots for Suzuki, Sony and Esonic.
Pepsi, meanwhile, had sales of $7.7 billion in 1984 and an increase in market share while Coca-Cola's dropped, according to financial reports at the time. Pepsi signed a second, $10 million deal with Jackson in support of his "Bad" album and tour through 1987-88. Where Jackson's initial deal with Pepsi was limited to the United States, this one was global, covering 20-plus countries during the singer's world tour.
The trend of Pepsi signing music stars as spokespeople has continued into the present day, with Lionel Richie, Madonna, Beyonce and Britney Spears all lending their name to the brand. Corporations of all stripes now align themselves frequently with pop artists, but with music and advertising becoming increasingly fragmented, Jackson's deals with Pepsi will likely remain the industry standard-bearer.
Murphy says that so-called 360 agreements, or multiple-rights deals -- in which recording artists share not just revenue from album sales but concert, merchandise and other earnings with their label in exchange for more comprehensive career support -- "are very effective, but whether they'll ever become that front-page newsworthy really depends on the level of wattage of the artist. I don't know that we'll see something like this again.".
So pervasive was the first campaign, which ran from 1983 to 1984, that the stories surrounding it have taken on the status of legend: the infamous accident that set Jackson's hair on fire and resulted in his rumored first cosmetic surgery, the star's desire to hide his face behind sunglasses for a "less is more" effect, and so on.
But its impact on the music and advertising industries was equally widespread. "It was definitely game-changing," says Brian J. Murphy, executive vice president of branded entertainment at TBA Global. "You couldn't separate the tour from the endorsement from the licensing of the music, and then the integration of the music into the Pepsi fabric. If you pulled any one of those pieces apart, it really took away from what the campaign was all about."
Jackson's creative input also was groundbreaking. "Michael was very much involved in the execution of everything, from the choreography to the location scouting," says Bob Giraldi, who directed Jackson's most iconic Pepsi commercials -- from the very first "street scene" spot, featuring kids dancing with their idol, to the "Bad" series that amounted to a mini action movie -- as well as the "Beat It" music video. "He really knew what worked."
A DEFINING PARTNERSHIP
Jackson had a deal with the athletic footwear brand L.A. Gear, other big endorsements were for international TV spots for Suzuki, Sony and Esonic.
Pepsi, meanwhile, had sales of $7.7 billion in 1984 and an increase in market share while Coca-Cola's dropped, according to financial reports at the time. Pepsi signed a second, $10 million deal with Jackson in support of his "Bad" album and tour through 1987-88. Where Jackson's initial deal with Pepsi was limited to the United States, this one was global, covering 20-plus countries during the singer's world tour.
The trend of Pepsi signing music stars as spokespeople has continued into the present day, with Lionel Richie, Madonna, Beyonce and Britney Spears all lending their name to the brand. Corporations of all stripes now align themselves frequently with pop artists, but with music and advertising becoming increasingly fragmented, Jackson's deals with Pepsi will likely remain the industry standard-bearer.
Murphy says that so-called 360 agreements, or multiple-rights deals -- in which recording artists share not just revenue from album sales but concert, merchandise and other earnings with their label in exchange for more comprehensive career support -- "are very effective, but whether they'll ever become that front-page newsworthy really depends on the level of wattage of the artist. I don't know that we'll see something like this again.".
sony /ATV
Megastar Michael Jackson has merged his music catalog with Sony Corp.'s music publishing division in a joint venture reportedly valued at $600 million.
Jackson's music catalog, ATV Music Publishing, includes some 250 Beatles songs as well as songs associated with Elvis Presley and Little Richard.
Sony/ATV Music Publishing will include all of the current and future music publishing interests of both parties.
The Sony catalog includes songs by such Sony recording artists as Mariah Carey, Sade, Bob Dylan and Neil Diamond.
Jackson's music catalog, ATV Music Publishing, includes some 250 Beatles songs as well as songs associated with Elvis Presley and Little Richard.
Sony/ATV Music Publishing will include all of the current and future music publishing interests of both parties.
The Sony catalog includes songs by such Sony recording artists as Mariah Carey, Sade, Bob Dylan and Neil Diamond.
Kingdom Entertainment
In 1997 the king of pop, Michael Jackson, launched a 50/50 joint venture with Saudi Arabia's Prince Al-Waleed bin Talal bin Abdulaziz al-Saud to promote entertainment based on family values.
Kingdom Entertainment, the name of the new venture, was to develop a variety of entertainment projects such as movies, books, hotels, recordings, licensing, merchandising and theme parks. Under the new entertainment company and serving as producer, Jackson for MJJ Records (Michael Joseph Jackson) will over see new artists, groups, music, and develop new projects.
The Jackson-Alwaleed company also aquierd 55% ownership of Landmark Entertainment Group, famous for design projects as the forum shops at Ceasers Palace in Las Vegas, and the Terimnatier II-3d attraction at Universal Studion in Orlando Florida.
"Michael Jackson and I shared the same interests and the same essential values," the Prince said about Jackson, whom he met 18 months ago in Paris and says also shares his "need to preserve family values."
The megastar, who designed the project's logo of a jeweled Excaliburstyle sword in a rock, said he wanted to be "actively involved in all facets of the global multimedia explosion."
Kingdom Entertainment's first project will be to sponsor Jackson's HIStory world tour.
Kingdom Entertainment, the name of the new venture, was to develop a variety of entertainment projects such as movies, books, hotels, recordings, licensing, merchandising and theme parks. Under the new entertainment company and serving as producer, Jackson for MJJ Records (Michael Joseph Jackson) will over see new artists, groups, music, and develop new projects.
The Jackson-Alwaleed company also aquierd 55% ownership of Landmark Entertainment Group, famous for design projects as the forum shops at Ceasers Palace in Las Vegas, and the Terimnatier II-3d attraction at Universal Studion in Orlando Florida.
"Michael Jackson and I shared the same interests and the same essential values," the Prince said about Jackson, whom he met 18 months ago in Paris and says also shares his "need to preserve family values."
The megastar, who designed the project's logo of a jeweled Excaliburstyle sword in a rock, said he wanted to be "actively involved in all facets of the global multimedia explosion."
Kingdom Entertainment's first project will be to sponsor Jackson's HIStory world tour.