7digital Group PLC Five contracts with new and existing customers (3324X)
May 04 2021 - 01:00AM
UK Regulatory
TIDM7DIG
RNS Number : 3324X
7digital Group PLC
04 May 2021
4 May 2021
7digital Group plc
("7digital" or "the Company")
7digital signs five contracts with new and existing
customers
Wins in key markets of home fitness and background music service
plus multiple customer renewals position the Company for further
growth
7digital (AIM: 7DIG), the global leader in B2B end-to-end
digital music solutions, is pleased to provide an update on recent
new customer contracts, together with existing customer renewals,
including within the Company's key target market of home fitness
and health. These new and renewal contracts underpin growth plans
for the Company's Music Platform-as-a-Service and provide
additional visibility over revenues, with up-front set-up fees and
fixed recurring monthly fees.
Two new clients
The Company has extended its strategic position as a leading
provider of music services to the home fitness industry by signing
a 24-month contract with a new client in the home fitness sector
serving the US market. The client will utilise 7digital's catalogue
and API playlisting tool, enabling instructors or users to access a
fully rights-cleared catalogue to download commercially compliant
music that can be seamlessly synchronised with video programmes and
made available on-demand - eliminating the need for separate,
complex or manual back-end processes.
7digital has also signed a 36-month contract with Viihdeväylä
Oy, a Finnish company that provides background music and
playlisting curation through their Maestro Pro offering to
restaurants domestically, as well as a variety of retail, leisure
and entertainment organisations, including cruise liners. 7digital
will provide Maestro Pro with catalogue access and label ingestion
based on its publisher and label clearances as well as providing
usage reporting.
Contract renewals
The Company has extended its relationship with a fast-growing
B2B music streaming service. The renewal of its agreement for 12
months to provide content fulfilment services from 7digital's
extensive music catalogue will enable the platform to provide
on-demand streaming for brands and businesses as well as
playlisting curation capability by genre, sound and business type
using fully licensed music.
In addition, 7digital has signed renewals with two other
clients, Swiss retailer Ex Libris and media company Global Radio,
owner of the largest commercial radio company in Europe. Each of
these contracts are renewed for a minimum of 12 months.
Paul Langworthy, Chief Executive Officer of 7digital, said:
"These new and renewed contracts provide an extremely strong base
for 7digital's growth plans this year and, with term lengths of up
to 36 months, also support our revenue visibility going forward. We
are excited to be expanding our customer base and delivering on our
strategy, including adding to our list of home fitness clients - a
segment that we expect will deliver substantial growth. At the same
time, we pride ourselves on the quality of our service and platform
offering, leading to extremely high client retention and growth in
contract size and scope. As we continue to expand our near-term
pipeline, these latest contracts will contribute to our expectation
of a positive outturn in 2021 ."
Enquiries
7digital c/o 020 7618 9100
Paul Langworthy
Arden Partners (Nominated Adviser
and Broker)
Richard Johnson, Benjamin Cryer 020 7614 5900
Luther Pendragon (Financial PR) 020 7618 9100
Harry Chathli, Joe Quinlan 7digitalIR@luther.co.uk
About 7digital
7digital is the global leader in B2B end-to-end digital music
solutions, providing a scalable cloud-based platform that enables
companies and brands to connect to its global music catalogue and
rights management system to launch and manage unique and engaging
music experiences. Operating worldwide in over 80 markets and
integrated with more than 300,000 labels and publishers, 7digital's
platform automates the complex and time consuming processes of
music management, making it easier to access and use music in
streaming services, social media, home fitness, gaming, retail and
more. With best-in-class infrastructure, deep industry expertise
and intelligence tools, 7digital empowers their clients to
innovate, grow and serve tomorrow's music consumer. For more
information, visit http://www.7digital.com/ .
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