7digital offers an open API and platform that other companies use to build customized music offerings, powering services such as Samsung’s Music Hub and the BlackBerry 10 App World music section. The company has shifted from consumer storefront competition toward a primarily B2B model, licensing its platform and taking a share of sales. It charges license fees and shares revenue with partners, and its API is integrated in millions of devices. Roughly 60% of sales come through devices, and the company reports tens of millions in annual revenue. 7digital is profitable and plans to expand its open platform strategy to power more music services while maintaining a traditional music store offering. The company was founded in 2004 and is based in London. 7digital is a UK digital media and music retailer that sells music and video downloads and provides branded digital solutions to corporate clients. Its catalogue contains over 3.5 million music and video downloads available from 99p each. The company began offering DRM-free downloads in December and has since seen a 188% increase in sales following the popularity of DRM-free tracks. 7digital reports 1.1 million customers and supplies branded digital services to clients including ITV, Channel Five, Pringles, Miller, Last.FM and Bebo. It operates across the UK, Ireland and Germany. The company recently secured outside funding to support continued growth and its DRM-free strategy.

Total raised

$18M

Funding rounds

2

Latest round

Equity

Latest activity

Oct 2012