It's offering personalised internet radio as part of a relaunch aimed at grabbing more users.
We7 lets users play songs and albums like its rivals, but will now focus on providing radio-style webcasts tailored to each user's tastes.
The new Internet Radio Plus feature will be similar to those offered by Last.fm and US streaming service Pandora.
We7 chief executive Steve Purdham says: "The on-demand function will still be there. We're not taking anything away – we're just changing the emphasis because the consumer has said: 'This is the way I prefer to listen to my music'."
Another advantage for the company is that the royalties on radio-style web services are around a third of those paid when a user streams a specific song on demand.
The company says it currently has three million users per month in the UK, but fewer than 10,000 of those are paying subscribers. Spotify has 500,000 paying subscribers across Europe.