HMV Buys 50% of Music Retailer 7digital for $12.6 Million

Authored by Mark Hefflinger on September 3, 2009 - 6:56am.

London - U.K. media retail store chain HMV Group announced on Thursday that it is acquiring a 50% stake in digital music distributor 7digital for $12.6 million. HMV said that 7digital will now power all of its existing digital operations in the U.K. and Canada, as well as e-book sales for its Waterstone's subsidiary.

The deal will give HMV customers access to 7digital's catalog of over 6 million MP3s, as well as a locker service that permits downloads of previously purchased tracks to any computer or Internet-connected device.

Founded in 2004, 7digital has licenses to distribute all four major labels' tracks as MP3s.

The company also powers digital music services for Spotify and Last.fm, and plans to launch a download application for RIM's Blackberry devices.

HMV operates 379 stores selling music, movies and games in five countries, as well as over 300 Waterstone's bookstores.

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