HMV Strikes Deal with 7Digital
Music retailer HMV has bought a 50% stake in 7Digital for £7.7 million ($12.6 million) as it hopes to enter the world of digital media.
The digital media firm, which provides services for Spotify, Last.fm and major music labels and artists, will use its expertise to handle all of HMV’s digital operations, including a new e-book store for its Waterstones arm.
“This is an exciting step for HMV which transforms our position in the fast-growing digital market,” said 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. Along with our recent initiatives, it demonstrates the Group’s continuing focus on transformation in structurally changing markets.”
HMV is very late to hop on the digital train, it’s been almost 9 years since iTunes came onto the scene. This is a deal that should have been done 6 years ago. Perhaps the collapse of retail competitors Zaavi and Woolworths made it realise that it needs to make some drastic changes if it wants to survive.
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