On Thursday (29/9/11), we7 converted it’s free service to a “radio” service – being the latest online music service to do so. It follows Spotify, who moved to limited music streaming in April.

The new service for free users allows up to 50 “on-demand” tracks per month, and then a limited radio service. Premium and Premium+ users still have full access to the old site at http://subscription.we7.com and can choose between the two sites.

It does prove that there really is no money in free choice-based music streaming. We7 previously blamed the music industries high streaming fee – which was difficult to match with advertising.

We7 has argued that it believes people want their music to be chosen for them on a genre basis. According to The Telegraph, it denies the move is due to increased competition.

It’s a real shame, but it seems impossible to make money from advertised streaming services.