With all the focus on ads-funded music streaming service, Spotify, its no surprise other similar services now think they may be on the edge of seeing the good times roll.
We spoke with We7 boss, Steve Purdham this morning, and he seems pleased his competitor’s found some funding.
“Spotify’s success in gaining funding is very positive news for we7 and other ad funded models,” Purdham said. “The huge value that has been put on Spotify demonstrates how valuable we7 is, given our model and achievements in such a short time. we7 is growing fast with July ‘09 our most successful month at all levels including ad sales, launching of new music and reaching 2.5m UK people, 1m via we7.com and 1.5m via our media partners who include the NME, The Guardian, The Sun and GQ.
“Overall Spotify’s valuation demonstrates tremendous strength in ad-funded music models, coupled with the recognition from the music industry that streaming sites are an incredibly important part of their overall marketing campaigns for artists and albums.
“We are now seeing the ad-funded model take off and are very pleased with the advertising campaign’s we’ve had to date. Ad revenue has been increasing month on month. Advertisers are also very happy with the results and we are starting to see repeat business, which is exciting progress.
“Both Spotify and we7 have seen huge growth in users since launch with we7 now reaching 2.5m users per month and that is great news for the music industry. This clearly demonstrates that there is enough space in the market for we7 and Spotify.
“Fundamentally, our services offer different approaches. As a web services we7 , unique value lies in easy mass market acceptance through sharing – giving brands the opportunity for viral spread.
“The web-based nature of we7 means that it is more acceptable to the mass market and music can be played anywhere and shared via social networking sites, twitter and email. Spotify is more attuned to early adopters who are comfortable with downloadable applications.
“For we7, it is important for us to show that the ad-funded model working in the UK before we move to other territories. We have learned from other digital models that going for scale before sustainability can cause problems. As an example, Imeem has more than 10 times either Spotify or our users but has ended up in significant debt to the record labels.”