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HMV's demise will have 'no material impact' on business, says 7digital

Rhian Jones
7Digital new

7digital expects to see “significant growth” in 2013, despite the fact that one of its shareholders, HMV has entered into administration.

HMV bought a 50% stake of 7digital in 2009 (though this has since been reduced), and in October last year, HMV’s own download store was incorporated into 7digital’s platform.

However, a round of fund-raising last October, secured £6.23m worth of investment in the platform, which now boasts partnerships with the likes of Toshiba, Samsung, RIM and HTC.

The digital music firm’s CEO Ben Drury said HMV is now a “minority shareholder”, therefore the retailer’s demise will have “no material impact” on the business.

Drury said: “Since HMV became a shareholder, 7digital has progressed to become a truly global digital music platform. The new investment enables us to continue the expansion of our business into new markets, meeting demand for high quality, integrated music applications and services. HMV’s stake in our business was diluted when we raised new investment”.

The CEO also said to expect “exciting product plans to enhance our open music platform” in 2013.

Source: CMU

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Tags: 7digital, HMV

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