Fender has joined forces with digital music solutions provider 7digital to help the guitar giant boost its online services.
The company, which offers services such as streaming and radio shows, will work with Fender to bulk up its offering of online and mobile products.
Simon Cole (pictured), 7digital’s CEO, said: “Since the period end we have continued to make good progress in licensing, agreeing several key contracts as the digital music industry continues to expand into new areas of current music consumption.
“These have included an agreement, announced today, with Fender, one of the world’s leading musical instrument companies, to provide technology and access to music and metadata. 7digital will provide services to bolster Fender’s suite of innovative online and mobile products.”
The deal announcement came as 7digital released its interim results for the half-year ended June 30. They revealed that recurring revenues are up 38%, one-off revenues are up 17% and the gross margin is now 71%.
MediaMarktSaturn, Europe’s biggest electronics and entertainment retailer, also became 7digital’s largest shareholder following the acquisition of 24-7 Entertainment.
Cole added: “Our work to create a suite of new digital services for Europe’s biggest entertainment and electronics retailer has begun and will gain momentum in the second half and into 2018.
“Our licensing revenues continue to see the results of the global growth in music streaming and, more particularly, the development of services in new markets and with new business models.”
By Georgina Littlejohn