An entrepreneur resurfaces on soda lids
Jeffrey Arnold, founder of WebMD which merged with Healtheon, and had many problems because of the crazy pace of acquisitions it went thru, is now back with CDs that are included on the lids of soda drinks at movie theaters according to this New York Times story (registration required):
By early 2003, Mr. Arnold had formed LidRock to make and distribute the tops. He purchased the exclusive rights to 19 patents which, he said, guaranteed that LidRock solely owned the rights to place whatever it wants in the lids. Then, Mr. Arnold swept into music industry boardrooms in New York and Los Angeles with a proposition: promote new and established artists by putting promotional three- and five-inch CD's in soda lids to be sold in movies, fast-food chains and sporting events.
...LidRock, a privately held company, said it would start earning a profit this year on $50 million in revenue. According to the current business plan, the retail venue, such as the film or fast-food chain, pays LidRock 80 cents for each lid. LidRock uses the money for the manufacturing and content costs of the lid - that is, payments to make the lid as well as payouts to record companies. There are added revenue opportunities because the lid may also contain details about concert tours and information on purchasing the CD's and DVD's of the artists involved.