HMV Group has agreed to pay £7.7m for a 50% stake in 7digital, an international digital media company whose technology is used by record labels such as EMI, Warner Music and Sony and also powers music services such as Spotify and Last.fm. 7digital’s technology platform will also provide a new and enhanced ebook store that will be used by Waterstone’s to build on its position in the fast-growing market for digital books.
As part of the deal, 7digital will become HMV Group’s sole supplier for all of its existing digital operations.
“This is an exciting new step for HMV which transforms our position in the fast-growing digital market,” says Simon Fox, chief executive of HMV Group. “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.”