Retailer HMV has announced that it will buy a 50 percent stake in online music store 7Digital, making 7Digital the supplier of all HMV's digital operations, which will include a new e-books website. The retailer will pay £7.7 million to the venture capital firms that originally backed 7digital for its 50 percent stake in the site.
HMV's like-for-like sales in the five countries it has operations in fell 1.8% for the eight weeks leading up to August 29. "With consumer adoption of legal digital media now reaching the mass market, this joint venture partnership is great news for our customers and suppliers," said Ben Drury, founder and head of 7digital.
HMV also announced that 7digital is planning to launch a mobile application for Blackberry handsets. The company is expected to post a pre-tax loss amounting to about £1 million this year. The move by HMV comes as legal digital sales account for more and more revenues to major media companies.
HMV also announced that 7digital is planning to launch a mobile application for Blackberry handsets. The company is expected to post a pre-tax loss amounting to about £1 million this year. The move by HMV comes as legal digital sales account for more and more revenues to major media companies.
Topics
Online music services
