HMV buys stake in 7digital

HMV has bought half of online music retailer 7digital in a bid to grow to its digital business, a move which comes as the entertainment group reports a drop in sales. 

The retailer has taken a 50% stake in the digital firm, which will now become its single supplier for all existing digital operations.

HMV says its digital offers in the UK will be “transformed” by access to 7digital’s technology and music and video catalogue. The digital entertainment firm has deals with some of the world’s biggest record companies including Universal and Sony.

7digital will also run the digital e-books store for HMV’s Waterstone’s  business as well as launching a mobile application on Blackberry.

Simon Fox, chief executive of HMV Group, who was recently linked with the vacant chief executive position at ITV, says the deal will help the Group “accelerate our growth in digital entertainment” as well as helping it become “a major player in the market for legally downloaded entertainment”.

The announcement comes as HMV reports a drop in like for like sales across all divisions, down 1.8% in the 18 weeks to 29 August.

A 3.7% dip in sales at Waterstone’s offset gains at HMV in the UK and Ireland, where like for like sales increased 1.7%.

The deal follows a number of other partnerships HMV has signed this year as the retail group looks to diversify. In April, it signed a deal with Orange to sell mobile phones and accessories in-store and agreed a partnership with independent cinema operator Curzon. The agreements followed its partnership with live music operator Mama Group at the start of 2009 that saw several live music venues re-branded with the HMV brand.

Recommended

Keepers of the truth

Marketing Week

Data stewards are vital to the success of data governance programmes. So what are the skills required? David Reed finds out.

Consumers reluctant if communications aren’t relevant

Marketing Week

Direct marketing is still failing to be personally relevant to the majority of consumers, a new survey has found. Just 12 per cent say they are receiving offers via DM that have personal relevance, with 54 per cent saying that virtually none are relevant. Only one third (34 per cent) said some of the offers […]

Comments

    Leave a comment

    Close

    Discover even more as a subscriber

    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now