LONDON (Hypebot) –
Digital retailer 7Digital announced that HMV Group is investing £7.7m in cash to acquire a 50 per cent equity stake in the company. 7digital will become HMV Group’s exclusive supplier of digital media content, comprising music and entertainment stores for HMV customers in the UK and Canada and eBooks from Waterstone’s.
7digital will continue to operate its online music stores and work with HMV to develop new digital entertainment services. The investment is the latest in a string of high profile partnerships for 7digital. The company currently provides download services for hundreds of clients, including Spotify, Last.fm, and will soon launch a MP3 download application for BlackBerry devices.
In addition to an enhanced 6 million track download store, HMV customers will also have access to the 7digital Locker, allowing them to download previously purchased digital media to any computer or device. Mobile apps will allow users to purchase and download media and sync with their home computer.
Ben Drury, CEO of 7digital, comments “HMV is the largest entertainment retailer in the UK and Canada, and combining our digital expertise with the respected brand will create a compelling download offering for the consumer. The widespread adoption of the MP3 format has raised the profile of legal downloading amongst consumers and the market is continuing to grow. We already provide a number of high profile clients with successful download services and are confident we will see similar success with this venture.”
Simon Fox, Chief Executive of HMV Group, comments “This is an exciting new step for HMV which transforms our position in the fast-growing digital market. We believe 7digital is the best partner to help us accelerate our growth in digital entertainment and to become a major player in the market for legally downloaded entertainment. Along with other recent initiatives, it demonstrates the Group’s continuing focus on transformation in structurally changing markets.”