London – U.K. ad-supported streaming music service We7
posted a $5.8 million loss for its 2009 fiscal year, up from the $1.6 million
loss reported in 2008, Music Ally reported.
The company said its turnover
increased from $73,600 in 2008 to $573,00 last year, although administrative
expenses for 2009 were pegged at $4 million.
"Market conditions, the
collapse of the banking sector and the ongoing nervousness of the music
industry made the advertising sector particularly susceptible to reductions of
budgets," We7 said.
"The net result of that meant that building sales
pipelines and closing revenue was a particular challenge during the year."
We7 CEO Steve Purdham told Music Ally he’s "relaxed" about the loss,
calling it standard practice for a start-up, and noted that if current progress
continues, "then the UK part of we7 would expect to see a cash-positive
position by the end of 2011."