UPDATE: The UK's City AM reported that Universal Music Group has entered into an agreement with streaming and download tech provider 7digital to launch streaming, download and merchandise portals for its most popular artists. 7 Digital has now issued a clarification
According to City AM 7digital will power direct to fan online portals that include the ability to buy streamed and downloadable music including exclusive and early access alongside artist merchandise.
UK based 7digital chief executive Simon Cole told City A.M. that the goal is offer labels and artists new revenue streams “outside of the standard £9.99 model” of Spotify, Apple Music and others.
The deal comes at a time when streaming accounts for 75% of label and artist revenue, as well as, growing indications that Apple will stop selling downloads sometime in 2019.
UPDATE: 7 Digital has issued this clarification:
7digital Group plc (AIM: 7DIG), the global leader in B2B digital music solutions, is pleased to announce it has entered into agreements with Universal Music Group (“UMG”) to provide partner services across three of UMG’s separate digital music products. The global agreements each cover a multi-year term and will contribute to 7digital revenues in 2018 and beyond.
Simon Cole, CEO of 7digital, commented:
“We are delighted to be announcing agreements with the world leader in music-based entertainment, Universal Music Group, since each contract focuses on UMG initiatives that enable deeper engagement between artists and their fans, and leverage a range of revenue streams within digital music.”