7digital reveals new features and funding, publishes 2011 financials


It’s a busy week for British digital music firm 7digital, which announced some new features for its B2B platform, revealed $10m of new funding, and also published its financial results for 2011.

The company says its technology is now embedded on more than 60m connected and mobile devices, with 250 services using its API – usage of which has increased by more than 400% in 2012. 7digital now has a catalogue of more than 22m tracks, and its Android app alone has been downloaded more than 3m times.

New features for 7digital’s platform include scan-and-match lockers and streaming, with Samsung and Pure already using the latter. The company has taken $10m of new investment from ‘strategic technology investors’ to continue developing its platform and expand to new markets.

And the financials? Published through Companies House in the UK, they reveal that 7digital’s revenues grew by 37% in 2011 to just under £8m, while the company cut its net losses from £675k in 2010 to £113k in 2011. 49% of the 2011 revenues came from 7digital’s B2B business, with 51% from its direct-to-consumer activities.

The figures make for an interesting contrast with Spotify’s 2011 numbers (revenues of $244.5m and a net loss of $59.1m), illustrating the difference between a hybrid B2B/D2C downloads-based business and an entirely D2C streaming business. 7digital is moving into streaming, but with a B2B skew that shifts the licensing risks to its partners.

Written by: Stuart Dredge