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7digital share price wobbles after Blackberry announces music service closure

By | Published on Wednesday 2 July 2014

7digital

Ah, the joys of being a publicly listed company. With it now being on the Alternative Investment Market, City types have been chattering about 7digital following the news last month that Blackberry – that maker of net-connected phones people used to use in the olden days – will this month shut down the music and video sections of its app store, hoping that an app licensing deal with Amazon will fill the gap for its consumers.

BlackBerry is one of digital music service provider 7digital’s biggest clients, meaning the firm’s share price has taken a hit since the phone maker’s announcement, slipping 12% overall.

Simon Cole, CEO of the combined 7digital since its recent merger with UBC Media, has tried to reassure investors that the development shouldn’t have any major impact on his company’s financial performance, adding that the firm will still support legacy customers of the Blackberry music service, and that talks have begun about developing some kind of new music set-up for the phone firm.

And, of course, 7digital is generally good at signing up new B2B clients each time the tech companies whose music services it often powers have one of those changes in direction. Recent new(ish) clients include Guvera and ROK.



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