7Digital surges following music gaming deal

(Sharecast News) - Digital music solutions outfit 7digital has inked its first deal in the "rapidly developing" area of music within gaming applications.7digital reached an initial two-year deal with Music Powered Games, a developer of online music games which use song lyrics to power gameplay.The deal will see 7digital set-up and maintain full-track streaming services for MPG's MuzArcade app, which just launched on iOS and Android in the US.The AIM-listed group said commercial terms were confidential but assured investors the deal would contribute to its monthly recurring revenues from Thursday's launch and stated it would also receive a "significant set-up fee".Chief executive Simon Cole said: "The industry is rapidly embracing music as a natural complement to the gaming environment and we see this as an important new area for both 7digital and for the music industry as a whole."MuzArcade is a perfect example of how the 7digital platform enables companies to easily use music to create unique customer experiences and broaden the market for digital music."As of 0950 GMT, 7digital shares had shot up 20.75% to 1.60p.