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.
The shareholder meeting has approved the debt for equity swap and further subscription raising £1.3m. The FY18 accounts are to be issued before 30 June and management has indicated that H2 revenues were marginally ahead of H1, with the improvement largely offset by increased costs. The group needs to raise a further £4.5m, of which the consortium ‘may’ subscribe £2.5m, by 31 July 2019. Ongoing strategy (subject to the successful completion of the fundraising) will focus on being a leading B2B music streaming solution provider, specifically in mobile telecomms, retail loyalty programme providers and automotive systems providers.
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, but there are many other opportunities for music to reach audiences, such as via connected devices. 7digital provides the back-end technology and catalogue to companies that may want to act as alternatives to these major platforms.