7digital Group provides an end-to-end, white-label digital music platform and access to global music rights that enable its clients, which include businesses in the radio, electronics, social media and telecoms industries around the world, to offer music streaming and download services to their own customers.
In early January, 7digital issued an update stating that it had completed its restructuring and the move onto one technology platform during Q418, which is expected to save an annualised £6.2m. It also outlined that it had signed several contracts with US technology platforms, record labels and broadcasters over recent weeks. Management disclosed that there is some uncertainty over the nature of the future relationship with Juke, with discussions currently ongoing. A petition against 7digital Trading, brought by HMRC for non-payment of £417k has since been dismissed on payment of the outstanding sum. We will reinstate forecasts when the outlook is clarified.
Streaming has revived the music industry and with only 2% of the world’s adult population paying for such services the opportunity remains significant. The market is dominated by a few global platforms; 7digital’s success is predicated on its view that there remains a vast untapped market for music services that will be served by a range of business models, such as via connected devices. By providing the back-end technology and catalogue to companies that may want to act as alternatives to these major platforms, 7digital is aiming to become the world’s leading end-to-end music services group.