UK digital media delivery firm and iTunes rival 7digital has received $8.5 million (£4.25 million) in funding from Sutton Place Managers and Balderton Capital (formerly known as Benchmark Europe). The firm, which offers music, video and film downloads to consumers in the UK, Ireland and Germany and creates branded online stores for clients including ITV (LSE: ITV), Channel 5 and Bebo among others, will use the money to expand into the United States as well further into Europe. It will also be expanding and adding video and computer game downloads to its site. 7digital currently has 1.1 million customers, who access their library of over 3.5 million music and video downloads typically costing £0.99 each. When the company started allowing DRM-free downloads in December, their sales shot up 188 percent. As part of the deal, Sutton Place Managers’ Patrick Maxwell joins the board. Four-year old 7Digital is seen as an innovative firm, having experimented with a number of pricing models and delivery formats and had an exclusive deal with UK indie band Radiohead for In Rainbows, the album they first made available by digital download.

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