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Ad-Funded Experiment Continues; We7 Out of Beta

Tuesday, November 11, 2008
by  presnikoff

Can advertisers adequately support a music industry?  That is a question worth asking, especially given the bottom-scraping CPMs often associated with entertainment and social networking sites. Now, a recent advertising downturn exposes another serious vulnerability of the model. 

Against a backdrop of distressed marketing budgets and slashed advertising spends, UK-based We7 is now pushing its ad-supported concept out of beta and shifting the action towards streaming content.  The British-focused site, at we7.com, features full-length, on-demand streaming on most songs, with surrounding ads.  "We7 has great music and that builds great audiences which will be highly valuable to brands and advertisers," said Steve Purdham, chief executive of the company. 

The revamped destination still includes ad-supported downloads, though that rollout remains ongoing.  Outside of the United Kingdom, the selection is far less comprehensive, and streaming is often limited to 30 seconds.  The licensing now includes all four majors, as well as independent content from INgrooves, The Orchard, and IRIS.  We7 was cofounded by Peter Gabriel.



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