HMV takes 50% stake in 7Digital

 

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By Stuart Turton

Posted on 4 Sep 2009 at 10:29

HMV has taken a 50% stake in digital music service 7digital in a deal worth £7.7 million.

Under the terms of the agreement 7digital will now supply its catalogue of six million music tracks to HMV's online store, as well as a new eBook service for the Waterstone's book chain - also owned by HMV.

HMV says it has entered into the deal to gain a foothold in the digital download market, as it looks to diversify away from its traditional CD and DVD business.

"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 in a statement.

"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," he adds.

7Digital's star certainly seems to be on the rise. The company also supplies downloads to streaming-music services Spotify and Lastfm, and its technology underpins the websites of Sony, Warner Music, EMI and Universal.