The Orchard grabbed attention last week for being the first independent consortium to license MySpace Music. But the group is also striking deals with smaller concepts, including We7. The London-based, ad-supported We7 has now grabbed 1.3 million Orchard tracks, a deal that includes various usage scenarios. Once fully-loaded, the content will be positioned as ad-supported streams and downloads. Additionally, users will also have access to more conventional, paid-for downloads, which do not carry advertisements.
The We7 venture, cofounded by Peter Gabriel, grafts short advertisements into on-demand tracks and downloads, a model that shifts the attention away from straight-ahead purchasing. That approach has gained support from EMI Music, Warner Music Group and Sony BMG, albeit with some limitations on available formats. That leaves Universal Music Group outstanding, though We7 is now dealing with an increasingly loaded content deck. Whether that can draw attractive CPMs remains unclear, and part of a much broader experiment in the space.

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