We7, an ad-supported internet radio service headed by Cheshire entrepreneur Steve Purdham, was co-founded by artist Peter Gabriel.

Tesco said in a statement that the move would offer customers "a wider choice in how they consume music, complementing Tesco's current music offer in store and online".

We7 changed its business model from an on-demand service to an online DJ platform late last year. The site currently claims over 3 million users and 6.8 million tracks, licensed by all four major ...