It seems like BlackBerry and the digital music firm 7digital are re-establishing the shared bond, with a new deal, thought to be worth more than £1 million, to launch a new music service.
7digital, announcing the new deal, said that the users will have to make transitions to new music lockers within the next 12 months. The company has also created a new app for BlackBerry users for them to continue purchasing music.
The news comes after the Canadian smartphone maker announced that it is shutting down the music and video sections of Blackberry World last month, resulting in the share prices of 7digital plunging. BlackBerry closed the sections in favour of licensing deal with the e-commerce giant Amazon, giving its users access to the Amazon App Store.
However, with the new deal, 7digital will continue to serve BlackBerry customers up until August 2015. In addition, the digital music firm will also take over the sales of music from BlackBerry, “retaining all profit margin earned on track sales” which was shared between the companies previously.
BlackBerry is said to be paying 7digital a fee of £705,000 this financial year and £315,000 in the next fiscal year before the end of the contract in August 2015.
Chief Executive of 7digital, Simon Cole said that the company is pleased to have agreed new terms with BlackBerry and serve the customers with music access. He added that this agreement will also ensure that both the continuation of the relationship between BlackBerry and 7digital and the digital music firm’s ability to sell music to its users.
