Feeds

We7 morphs from jukebox into a radio station

Users un-demand on-demand

Build a business case: developing custom apps

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. ®

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
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.