Tuesday 15 January 2013, 12:53 | By Chris Cooke
7digital boss says HMV administration will not affect business
Digital music firm 7digital’s CEO Ben Drury has told CMU that he expects the company to see “significant growth” in 2013, despite one of its shareholders, HMV, going into administration overnight. This, he says, will have “no material impact” on the business.
HMV’s stake in 7digital remains one of the few assets the company still has, having sold off various parts of its business as it attempted to keep its retail operation afloat last year, although its stake has already been reduced from the 50% it bought in 2009. In October last year, HMV’s own download store was incorporated into 7digital’s platform.
Drury told CMU this morning: “HMV [has been] a highly valued brand in both the music and British retail sectors for decades, and we were saddened to hear the news of the filing for administration overnight. [However,] HMV is a minority shareholder in 7digital and, as such, this development will have no material impact on our business. Since HMV became a shareholder, 7digital has progressed to become a truly global digital music platform”.
He continued: “We announced significant new investment last October ($10 million), which is driving further growth. Our partners include RIM, Samsung and other leading brands, who use our technology to power global digital music services. The new investment enables us to continue the expansion of our business into new markets, meeting demand for high quality, integrated music applications and services. HMV’s stake in our business was diluted when we raised new investment”.
Finally, he said: “We are looking forward to significant growth in 2013 and have exciting product plans to enhance our open music platform”.