22/06/2012

Tesco buy WE7

Supermarket giant Tesco has purchased a 91% stake in music streaming site We7 for £10.8m. It plans to buy the remainder of the company in the coming weeks. We7is an ad-supported internet radio service, it changed it's business model from a streaming service along the lines of Spotify last year to something more like lastfm. You enter an artist or album you like and it plays songs from and similar to that artist.

The service boasts 3 million users, but to be honest these systems are a bit hit and miss, you will get a few tracks you like and then some random crap that you just turn off.

With the magic Tesco touch they should turn it to complete shit within a few months.

Sainsbury's is also investing heavily in digital music businesses, the lure of the Apple iTunes business model has them drooling with envy. Trouble is that it is fairly and squarely the domain of Apple and Amazon, other platforms just nibble around the edges, we7 may have 3 million users, but how many of them are actively using it? Everyone who registers with these services is counted as a user even if they never go to the site again.

http://www.we7.com/
Every little helps (Tesco profits)

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