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Music streaming service We7 acquired by Tesco for £10.8 million

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UK retailer Tesco has purchased a 91 percent stake in streaming music service We7.

Music Deal Subscription
Music Deal Subscription

Super-retailer Tesco has announced that it now has a 91 percent stake in We7 — a UK-based music streaming service not unlike Pandora — with intent to buy the remaining shares within the next couple of weeks. The £10.8 million ($16.75 million) purchase gives Tesco another method of distributing music beyond CDs and digital music downloads, and in reminiscent of its acquisition of video streaming service Blinkbox last year.

The purpose behind the acquisition is simple, as digital director at Tesco Mark George said in the press release:

Customers and technology together are transforming the way we listen to music. Tesco is already one of the UK’s largest retailers of CDs; this move will help us offer a greater choice for the growing number of customers who want to access music instantly on any device, whenever and wherever they want.

Implementation details were not revealed, although there may be potential for the retailer to provide customers with online streaming access to music they buy on CD — a similar service is currently offered with select DVD and Blu-ray purchases — or tie-in premium We7 subscriptions with Tesco Clubcard memberships.