March 10th, 2008
Sony BMG Signs with Ad-Supported Music Service We7
By Michael Santo
Editor-in-Chief, RealTechNews
What’s up with Sony BMG? Of late, they seem to be open to trying new ideas which, based on their rootkit-like DRM and other issues in the past, seem out of character.
First they sign a deal with Amazon MP3 for all DRM-free music, and now this!
Sony’s new deal is with We7, an ad-supported music streaming / download service based in the U.K., with 100k subscribers and over 2m downloads as of February 2008. Sony BMG thus becomes the first major label to sign with We7, which was founded in April 2007. Musician Peter Gabriel is one of its founders.
The We7 service works by dynamically ‘grafting’ ads onto the front of music tracks and albums based on a user’s demographics such as location, age, gender.
According to the press release:
From the end of April, We7’s users will be able to stream music, on demand and for free with a short audio advert before each track, from the extensive Sony BMG catalogue. The label will also make available to stream on demand new releases from its current roster of artists. Initially the streaming service will only be available to existing registered users of We7, before it is rolled out to new subscribers.
Commenting on the announcement, Ged Doherty, Chairman of Sony BMG in the UK and Ireland, said “We are in the business of embracing a multitude of new ways our music can reach audiences. Our deal with We7 is an important step forward in offering fans greater flexibility in how they consume music.”
Steve Purdham, CEO of We7, commented “Today marks a significant leap forward for We7 and the industry as a whole, as Sony BMG lead the way in embracing the on demand streaming model for the benefit of music fans, artists and advertisers alike.”
Peter Gabriel, the musician and founder of We7, added “The digital revolution has provided exciting and extraordinary opportunities in the music business, even though it has been largely written off by many. We7 is a model that will supply free music to the consumer and still provide a stream of revenue to musicians and content owners. We are delighted that Sony BMG are exploring this new world, and are the first forward thinking major to come on board with us.”
As indicated above, initial access to Sony BMG music will be limited, but it’s unclear what “existing registered users” means. Does it mean only those already signed up as of this press release, or does it include those who sign up before the Sony BMG music goes live in April? I sent an email to We7 to find out.
It should also be noted that Sony BMG is only supplying tracks for the streaming part of We7’s service, not the download portion, although Doherty did not rule out a future deal including downloads. He also said that Sony BMG was in talks with other such ad-supported music services - interesting.


Well, it certainly looks like one and almost behaves like any real UFO — except we have identified it.
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