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.
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."
c/o 020 7618 9100
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Arden Partners (Nominated Adviser and Broker)
Richard Johnson, Benjamin Cryer
020 7614 5900
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Luther Pendragon (Financial PR)
Harry Chathli, Joe Quinlan
020 7618 9100
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/.