BlackBerry has inked a deal with digital music firm 7Digital to provide music services for the mobile phone firm for the next year.
Shares in 7digital had plunged after its flotation was undermined by its major customer’s decision to close the music and video app sections of BlackBerry World, instead opting for a licensing deal with Amazon.
But 7digital today reported that user will be given 12 months to transfer their music to new “lockers”.
7digital will also take over the sales of music from BlackBerry through a new app – which had previously been shared – which means it will retain all profits from the track sales.
BlackBerry will pay 7digital fees totalling £705,000 in the current financial year and £315,000 in the next financial year up to the end of the existing contract in August 2015.
7digital is also expanding its contract with existing customer Guvera to stream music through Lenovo mobiles and tablets in new countries. It currently operates in the UAE, Saudi Arabia and India and will provide its service in an additional eight emerging market territories.
7digital chief executive Simon Cole said: "We are pleased to have agreed new terms with BlackBerry to provide its users with access to music. This arrangement ensures both the continuation of our relationship with BlackBerry and our ability to sell music to its users.”
