In company, plays new song (7)
I believe the answer is:
calypso
'song' is the definition.
(I've seen this before)
'in company plays new' is the wordplay.
'in' indicates putting letters inside.
'company' becomes 'co' (abbreviation).
'new' is an anagram indicator.
'plays' is an anagram of 'alyps'.
'co' placed around 'alyps' is 'CALYPSO'.
(Other definitions for calypso that I've seen before include "West Indian music - nymph who kept Odysseus on her island" , "Caribbean dance" , "West Indian song with variable rhythm and improvised words" , "West Indian ballad - Homerian sea nymph" , "A number of West Indians" .)