7digital music platform signs first gaming deal

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London-based digital music services firm, 7digital, has signed its first deal in the rapidly developing area of music within gaming applications.

The company, which is also listed on the London Stock Exchange’s Alternative Investment Market (AIM) for smaller stocks, said it had signed an initial two-year deal with Music Powered Games, a developer of online music games which use song lyrics to power the gameplay. 

The deal is to set up and maintain full-track streaming services for MPG's highly anticipated new "arcade of music games" which launches today in a single app, MuzArcade, on iOS and Android in the United States.

7Digital received 'significant' set-up fee

Commercial terms are confidential, but the deal will contribute to 7digital's monthly recurring revenues from launch today and the company will receive a significant set-up fee.

"We are excited to announce this partnership with Music Powered Games’, said Simon Cole, CEO of 7digital. “The industry is rapidly embracing music as a natural complement to the gaming environment and we see this as an important new area for both 7digital and for the music industry as a whole.

"MuzArcade is a perfect example of how the 7digital platform enables companies to easily use music to create unique customer experiences and broaden the market for digital music."

The deal comes just days after 7digital won a €4m settlement from German music service Juke Entertainment, ending a partnership between the two companies.

“Under the Agreement, 7digital has accepted settlement of, and release from, all outstanding contracts and commitments relating to the Juke music service for an immediate payment by Juke of €4,000,000 ($4.5 million)”, 7digital wrote in a stock market announcement earlier this week.

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