7digital hit by BlackBerry's closure announcement

1st Jul 2014 12:10

Shares in AIM-listed 7digital took a hit on Tuesday following BlackBerry's decision to close the music and video sections of BlackBerry World.The group insisted it didn't anticipate the decision would have an impact on current market expectations for its financial performance. "The company continues to work with BlackBerry under its existing contract which provides for the continuation of a music service in the event that Blackberry were to close its own music store," the firm explained. 7Digital also believes BlackBerry intends to continue to provide its users with access to the music they have stored in their 'lockers' using 7digital services. It confirmed it was working with BlackBerry on an alternative solution for the purchase of new music. 7digital Chief Executive, Simon Cole, said: "7digital Group operates in a fast-growing and quickly-changing marketplace. As outlined in the recent admission document, the consumer market in which many of our customers operate is transitioning from a download to a streamed environment. "As a leading supplier of B2B services in the music and radio industry, 7digital helps new and existing customers to find ways of adapting to this changing market and that is what powers demand for our services."Shares had fallen 10.41% to 16.35p by 11:32.NR