RealTime IT News

Chaos Enters Bricks and Mortar Music Market

Online music and multimedia provider ChaosMusic has signed a contract with the Strathfield Group to provide CDs, DVDs and computer games to the car radio and mobile phone chain of retail stores.

The deal will extend to 80 Strathfield stores which will incorporate individual vending stands, or 'Chaos Bars', which will supply and update Australian-sourced Top 40 music titles, as well as major Australian DVD and computer games on which Strathfield will take a commission.

The agreement includes a cross promotion between the two companies where ChaosMusic will promote Strathfield's mobile phones and consumer electronics to its userbase of over 55,000 members on its Web site, newsletter and other online and offline channels.

In return, Chaos will receive branding in the 'bricks and mortar' Strathfield stores and promotion its Web site through the Strathfield direct mail catalogue and Web site.

An initial trial period of three months will begin in a number of Strathfield Sydney and Melbourne stores, and the deal will extend to a period of one year, subject to extension.

ChaosMusic's chief executive officer Rob Appel said the deal provided an opportunity for both companies to cross-promote for mutual benefit.

"This agreement gives us an immense retail store reach to bona fide music buyers without the bricks and mortar expense of establishing an offline chain," said Appel.