How McDonald's work-for-free offer backfired

http://www.cbsnews.com/news/how-mcdonalds-work-for-free-offer-backfired/

ByAimee Picchi MoneyWatch March 9, 2015,

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McDonald's (MCD) is raising the ire of artists and hipsters across the country after asking an indie band to play for free at the SXSW arts festival in Austin, Texas. Despite making a profit of $4.76 billion last year, the company asked indie band Ex Cops to play at its McDonald's Showcase without pay. The renumeration would instead come in the form of "additional exposure" and "cross promotion" from the fast-food giant's digital team, according to an account from Brian Harding of Ex Cops.

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Harding noted that McDonald's had dangled other compensation, such as free food and getting featured on screens throughout the event, as well as possibly being mentioned on McDonald's social media accounts. He noted that the fast-food giant told him, "There isn't a budget for an artist fee (unfortunately)."

But McDonald's attempts to make the offer enticing failed to win over Harding, who pointed out that the company's employees must work four months to earn what the CEO makes in an hour. He added that his band recently played a show for a small independent business in Brooklyn, which managed to pay them "very very fairly."

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As for McDonald's claim that it was only offering what other sponsors were offering -- no pay -- Ex Cops singer Amalie Bruun told Rolling Stone that was flat-out not true.

Bruun added, "They're not following any guidelines because everyone else is offering money. They'll have to take that up with South by Southwest if they think they're following the guidelines...Other, much smaller corporations are offering us money."