*** Launches Advocacy Campaign to Raise Awareness ***
SAN DIEGO, April 10 /PRNewswire-FirstCall/ -- Gateway, Inc. (NYSE: GTW)
today will publicly take a stand with consumers on the digital music debate,
launching the first mainstream marketing campaign by a technology company
supporting consumers' right to enjoy digital music legally.
Speaking directly to consumers with an integrated campaign of TV, radio,
web and in-store communications, Gateway invites them to legally download
music at http://www.gateway.com and attend free digital music clinics in all
277 Gateway stores on April 13 and 14. The company also declares its support
for activities that are accepted today -- such as converting a legally
acquired CD to MP3 format for use in a portable player, or burning a backup
copy of a legally acquired CD as a safety measure -- but which could be
outlawed by a bill proposed by Sen. Fritz Hollings of South Carolina.
"Digital technology allows consumers to enjoy music in new and exciting
ways, but illegal piracy and government intervention both threaten to stop the
music," said Ted Waitt, Gateway chairman and CEO. "Our customers are telling
us clearly that they value digital music technology and they want to keep
using it legally. This campaign is intended to show we support their right to
do so while giving them the tools and information they need to understand and
use digital music technology in ways that don't harm copyright holders."
Music to Consumers' Ears
An independently conducted, national opinion survey(1) commissioned by
Gateway last month indicates that 44 percent of U.S. PC owners currently have
a CD burner. The survey suggests that consumers who've adopted digital music
technology want to keep using it, and report that their use of it is
compatible with a healthy, profitable music industry. For example:
-- Of consumers who say they have downloaded music from the Internet,
73 percent say they now spend the same amount of money -- or more --
on music purchases.
-- Fifty-three percent of computer owners say they'd be more likely to
buy a CD if they could first download one track from the Internet.
Only 10 percent say they'd be less likely to buy given this ability.
Gateway's Campaign
Tonight a TV spot will debut featuring Gateway CEO Waitt and his talking
Holstein cow on a road trip, enjoying a mix CD. The two sing along with
musician Elwood's edgy cover of Gordon Lightfoot's 1974 hit "Sundown." The
commercial offers a free "Sundown" MP3 download on http://www.gateway.com ,
encourages viewers to burn it to a CD or load it on an MP3 player, and
concludes by telling them "Gateway supports your right to enjoy digital music
legally."
The TV commercial directs consumers to an all-new area of Gateway's
website, the Digital Music Zone ( http://www.gateway.com/digitalzone/music )
where they'll find:
-- A free, legal download of "Sundown" plus a selection of other free,
legally downloadable MP3s that will be refreshed frequently -- making
Gateway.com a destination for music lovers.
-- Introductions to CD burning and music downloading from the Internet --
without infringing on others' copyrights.
-- Gateway's statement on consumers' digital music rights.
Starting Saturday, all 277 Gateway(R) stores will give away CD-R blanks
(limit three per customer, while supplies last). This Saturday and Sunday at
4 p.m. local time, all Gateway stores also will host free digital music
clinics -- one-hour presentations on how to burn CDs, work with music
software, and more.
The TV commercial was created by Gateway's advertising agency,
Siltanen-Keehn.
Gateway and Digital Media
Gateway is a leader in helping consumers adopt new technologies to improve
their quality of life. Two years ago the company introduced its revolutionary
Your:)Ware(R) 2.0 packages -- all-in-one bundles of hardware, software,
peripherals and training that allow consumers to quickly and easily get up and
running on popular digital media applications such as digital music,
photography and video.
Gateway also is the nation's leading provider of consumer-focused
technology learning programs, using its nationwide network of Gateway stores
to teach people how do get more out of technology.
"Piracy is illegal and hurts the artists whose music adds to our quality
of life," said Waitt. "Gateway is advocating consumers' right to use existing
technology in ways that respect copyrights while allowing them to discover new
artists and enjoy the added flexibility of digital media formats."
About Gateway
Gateway, Inc. (NYSE: GTW), a personal technology company, improves
people's lives through a combination of the latest and best hardware,
communication tools, applications, training and service, all wrapped in a
custom financing package. The company takes a localized approach, utilizing
its Web site, call centers and nationwide network of Gateway retail stores to
build direct relationships with consumers, small and medium businesses and
government and education institutions. A Fortune 500(R) company founded in
1985, Gateway is the top brand in customer loyalty and for first-time home
computer purchases of Wintel-based PCs(2). For more information, visit
Gateway's Web site at http://www.gateway.com.
(1) National phone survey of 1,057 Americans ages 18 to 44 who have a
personal computer at home that they personally use. Survey conducted
March 2002 by Market Facts Inc. of Chicago, commissioned by Gateway,
Inc. Margin of error is +/- 3 percentage points.
(2) From the Harris Interactive Consumer TechPoll(SM) study of 140,000 PC
owners who use the Internet, released March 5, 2001.
SOURCE Gateway, Inc.
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Related links:
http://www.gateway.com
http://www.gateway.com/digitalzone/music
CONTACT:
Media, Brad Williams of Gateway,
+1-858-848-2512, brad.williams@gateway.com
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