16th Oct 2014 08:35
LONDON (Alliance News) - 7digital Group PLC Thursday confirmed it has entered into a deal with Will.i.am's i.am.plus LLC for the development of applications and operation of the music service for musician's new wearable device.
7digital said revenue from this service will further support its transition from its historical downloading business to new revenues from streaming services, underpinning its revenue expectations. However, it does not expect the new agreement to lead to a change in market expectations in regards to its financial performance.
No further financial details of the deal were disclosed.
Will.i.am, part of pop group 'The Black Eyed Peas', demonstrated the new music service 7digital had developed on his wearable "cuff" called 'Puls' in San Francisco Wednesday.
"There is a massive change going on in digital music as new streaming models replace the buy to own downloading model. Many of these, like the service launched last night by will.i.am, will be designed for ease of use on mobile and wearable devices," said Chief Executive Simon Cole in a statement. "These services require the technology platform and expertise in both radio and streamed music that 7digital has at its core."
Shares in 7digital are trading down 7.0% at 27.90 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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