The online music service We7 has succeeded where many similar companies have failed: it has managed to get its advertising revenues to cover not only its own costs but, more importantly, the cost of the royalties it pays to the artists whose tracks it plays.It may not sound like cause for celebration but after three years, We7, co-founded by Peter Gabriel, can lay claim to being the first company in the UK to prove that internet advertising can be used to fund a web-based on-demand music service that pays industry-standard royalties to musicians.
http://www.guardian.co.uk/media/2010/apr/28/we7-online-music-service
We7 shows ad-funded model can work for online music
The online music service We7 has succeeded where many similar companies have failed: it has managed to get its advertising revenues to cover not only its own costs but, more importantly, the cost of the royalties it pays to the artists whose tracks it plays.