Feeds

We7 morphs from jukebox into a radio station

Users un-demand on-demand

Remote control for virtualized desktops

Is there anyone in the world who needs to know the difference between "on demand" and "non-interactive" music? We use the words "jukebox" and "radio" as shorthand – but really, no one should care.

But in the archaic world of music licensing, the two command different royalty rates – and the higher on-demand rates are squeezing the suppliers towards radio.

The Peter Gabriel-backed music service We7, one of the first ad-supported music services, this week completed the shift from jukebox to personalised radio station – having previously been a shop. The company says higher supply costs are a factor: the PRS charges 0.065p per play for an internet radio service, versus 0.085p per play for an on-demand service.

We7 announced the shift last November, having lost £3.68m in 2009, with revenue of just £361,081.

This week it completed the transformation – although members are still entitled to 50 on-demand tracks a month. The pay side offering ad-free and mobile access continues.

"We believe that a radio-with-request service is easier for more people to get access to more music without effort, you just sit back and just enjoy the music," CEO Steve Purdham told us. "Rights-holders are imposing more restrictions upon free music services in an attempt to protect the value of music – but in fairness, only 2 per cent of our users request more than 50 tracks a month."

Pandora's phenomenal growth in the US has helped make the move look like a positive one. The US company successfully went public this year, and while it is still in the red, looks healthier financially.

It makes you wonder who, if anyone, can capitalise on Spotify's self-inflicted wounds this week. ®

Intelligent flash storage arrays

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.