7digital launches US downloads store
European music retailer 7digital has launched its US store, undercutting iTunes with individual MP3 tracks selling for $0.77 and albums for $7.77. The launch ties in with the release of 7digital’s BlackBerry music store, but the company is also partnering with companies like Last.fm, Songbird and WinAmp – not to mention Spotify when that eventually launches in the US.
“By piggybacking on their reach, we can grab some meaningful market share,” says CEO Ben Drury, saying the company’s experience with Spotify in Europe indicates streaming does lead to paid downloads. “The price per unit is definitely plummeting – people will definitely spend less money on a track-by-track basis… but the volume of consumption will go up.”
iTunes is the dominant digital music retailer in the US – and even Amazon hasn’t made huge inroads into its market share. However, 7digital’s partnership-focused strategy gives it a shot at building a decent business there.
Tags: 7digital
October 6th, 2009 at 10:00 am
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October 6th, 2009 at 11:02 am
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