Feeds

We7 morphs into Last.fm-style radio

A lot less like Spotify, see

Intelligent flash storage arrays

British music service We7 is shifting emphasis to personalised radio-style streaming, which means lower royalty costs… and fewer comparisons with upstart Spotify.

We7 says it will keep the on-demand streaming component, but put more emphasis on the sort of features offered by Last.fm and Pandora. There's another advantage: lower costs, with royalties for radio-style streaming one third of the rates for on-demand.

The company launched the former in January and says it now accounts for 55 per cent of plays.

Peter Gabriel is an investor in We7, which launched in April 2007. Two years later Spotify was storming the market. We7 goes for a younger and poppier demographic, and has also developed iPhone apps and an offline subscription service.

However, that demographic is much less inclined to pay subs. We7 is reckoned to have around 10,000 paying punters, compared to Spotify's 500,000. But Spotify has effectively turned off the free music tap - you really need to join.

The hype around on-demand music streaming has eclipsed former pinups Last.fm - a candidate for "are they still alive?" pub quiz questions - and Pandora. But the economics of on-demand is brutal. In 2009, We7 saw income of £361,081 but cost of sales was £1.5m and admin expenses £2.5m - producing a loss for the year of £3.68m.

It's very much in start-up mode. ®

Security for virtualized datacentres

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.