Losses at UK based we7 offer insights into the struggles facing all music streaming services unless ad revenues jump, labels and rightsholders become more flexible or both. We7 reported a loss in 2009 of £3.66 million after taxes, up from a £2.61 million loss in 2008. At the end of last year, we7 had total remaining assets of £539,189 with obligations due in the next year of £1.54 million. In January. investors said they would add additional support for the company.
“The market conditions, the collapse of the banking sector and the on-going nervousness of the music industry made the advertising sector particularly susceptible to reductions of budgets and ordering through ’safe havens’,” according to a Music Ally reading of the financials. “The net result of that meant that building sales pipelines and closing revenue was a particular challenge during the year… The overall sales delivery was not as strong during 2009 as we7 would have liked.”
