UK-based supermarket giant Tesco has announced that it has acquired music streaming service We7 for £10.8m ($16.75m).

The retailer says that it will “offer customers a wider choice in how they consume music and complement Tesco’s current music offer in store and online.” The move broadens its online content offerings. It also recently acquired Blinkbox, a video streaming service.

Tesco has acquired a 91% stake in We7 as of today and says it will purchase the remaining shares within a period of weeks.

Founded in the UK in 2007 with backing from former Genesis frontman Peter Gabriel, and fully launched as a music streaming service in late 2008, We7 has shifted its business model a few times in its lifetime, most recently offering a radio format similar to Pandora but with the option to get breaking news alerts and other radio-style features.

Despite expanding into Belgium and Ireland last year, We7 was blighted by reports of huge financial losses. Now as a part of Tesco, the service will take on Spotify and the other players in a competitive market with the support of a highly successful multinational retailer.

Image credit: LoopZilla