7digital’s shares surge on two deals
London-based digital music and radio services platform, 7digital, saw its shares jump 19% at the stock market open today after it announced two major deals.
The company said it had inked a deal with music rights technology firm Dubset Media and formed a “significant” partnership with mobile tech giant ACCESS.
7digital said it has agreed an initial one year deal with Dubset, a rights tech company that identifies, claims, and collects royalties for labels and publishers when their catalogues are found within mix content.
This clearance process enables DJs and producers to legally distribute their mixes and remixes to major music services including Apple Music, Spotify, and Tidal.
Under the terms of the deal, 7digital will provide access to the Company's music platform to assist Dubset in further enhancing its proprietary MixSCAN recognition technologies.
The company said that commercial terms are confidential but the deal will contribute to 7digital's monthly recurring revenues for 2019 and the company will receive a significant set-up fee.
"Technology has levelled the playing field when it comes to creating music and distributing it to a receptive audience”, said Simon Cole, CEO of 7digital.
“This is a hugely exciting development, but it brings with it unique challenges. Dubset is growing a new marketplace for DJ sets and remixes, which represents a valuable revenue stream for rights holders. We're delighted to be using our platform to partner with Dubset and deliver value both to the music industry and to individual creators."
Connected car deal
7digital also announced a significant partnership in the "connected car" sector in a deal with Japanese mobile technology firm, ACCESS.
The firm said that development of music and radio services in the rapidly expanding market for cars that are connected directly to the internet has always been strategically important for it.
ACCESS is a global provider of software solutions powering 1.5 billion devices worldwide to enable cutting-edge connected entertainment services in and out of the home, including radio services in the car.
Under the terms of the agreement, 7digital will pre-integrate its IP radio services and APIs into ACCESS' recently launched ACCESS Twine™ for Car multimedia content service platform for automotive manufacturers.
7digital said that ACCESS Twine for Car provides a white-labelled infotainment services platform for the car industry, enabling drivers and passengers to access the latest entertainment from the comfort of their seats.
The unique platform capitalises on increasing in-car connectivity, bringing a wider range of audio services to drivers and passengers and enabling internet radio to integrate with existing broadcast services.
The platform will, in the future, also allow for additional functionality, such as 'listen again' programming and on-demand podcasts, alongside new business models such as targeted advertising and recommendations.
"The connected car opens up a new world of in-car entertainment and represents a clear opportunity for radio to take advantage of its central position on the dashboard”, 7digital’s Cole said.
“We saw an enormous level of activity in this sector at CES this year and are thrilled to be able to announce this first partnership with ACCESS, who are pioneers in the connected car environment.
“We think the ACCESS Twine for Car platform is groundbreaking and look forward to developing it together."
After initailly surging 19 per cent at the open, the shares eased back mid morning to trade nine per cent higher at 1.25p per share.