Feeds

We7 morphs from jukebox into a radio station

Users un-demand on-demand

Choosing a cloud hosting partner with confidence

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.