Friday, June 15, 2012

Tesco buys UK music site We7 for £10.8m

Tesco has purchased We7, a British digital music service, which attempted to rival Spotify, for £10.8m.

The service attempted to go head-to-head with Spotify in 2009 as streaming began to take off. However, it lost that battle as Spotify’s star continued to rise – launching around the world - while We7 was forced to end its costly free on-demand streaming offering. Instead, the site co-founded by Steve Purdham and the former Genesis frontman Peter Gabriel, has focused on providing personalised radio stations to its users in an attempt to differentiate itself in an increasingly competitive marketplace. 
It is understood that Tesco, which currently has a 91 per cent stake in the company but will purchase the remaining nine per cent within the next few weeks, plans to launch additional digital music services on the We7 platform in the coming months. 

Source and more details on Telegraph UK

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