7Digital, a London-based service offering music downloads, is one of the few such services to have hung in there in a market that has become incredibly competitive. Part of the reason for the success of 7Digital has been its commitment to supporting unsigned bands and record labels.

The online store recently received £4.2m to fund its expansion into Europe and the US. Most music-download store have found themselves outdone by iTunes at every stage of the game, but not so 7Digital.

The music-download store has strong links with Radiohead, ITV, Bebo and Last.FM. As well as 3.5 million music downloads, the online store may soon offer film and game downloads.

Other good news for 7Digital comes with major record labels removing digital-rights-management restrictions from music downloads, making it easier to sell music to consumers. Competition is good and it’s positive to see more music-download stores than just iTunes and Amazon.

We’re rooting for 7Digital in 2008.