Published:
16-Sep-08
7digital, a UK-based music service provider and a download store, became the first European store to offer an MP3 catalogue from all four major labels after securing a DRM-free distribution licence from SonyBMG. Users who previously purchased DRM-wrapped SonyBMG tracks can download the mp3 version for free.
7digital also opened its API for development of third-party online, mobile and desktop applications. Partnership option is available for non-developers and provides users with an embeddable widget based on API data. 7digital will pay commission on any sales through partnership programme or third-party programmes based on their API.
7digital.com flagship store is now available to all EU citizens and has localized versions for customers in Austria, France, Germany, Ireland, Italy, Portugal, Spain, and the UK. US and Canada launch is scheduled for the last quarter of 2008.
Our take...
As Screen Digest predicted, European online music market is following the example of the US and moving towards DRM-free distribution. Major labels are continuing their assault on the dominant position of Apple's iTunes (iTS) by licensing MP3 catalogues to competing outlets. While converting to DRM-free catalogue certainly removes barriers to purchase, it is nonetheless difficult for a standalone music service to gain a significant market share in hardware driven digital music market. 7digital has been in many ways an exception – Screen Digest estimates that the company gained second position on the a la carte music download market in the UK (which is however nowhere near over three quarters of the market controlled by iTS). The open API should help 7digital to extend its reach and thus further strengthen its market position.
