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7digital wins two new contracts; sees progress with clients
Music streaming and radio service provider 7digital Group on Friday said it had won two new contracts to further underpin 2018 revenues.
The AIM-listed company said it has signed a further agreement with its largest individual shareholder and one of its biggest customers, MediaMarktSaturn, to cover the migration of the existing "Juke" music service in Germany onto the 7digital platform.
The contract involves a significant setup fee for work done in 2017 and ongoing monthly recurring revenues, it added.
7digital also said it had signed a deal with 8tracks, a popular digital music service based in the US. Founded in 2008, 8tracks focuses on music discovery through crowd-curated playlists.
"The deal has a one-year minimum term and is expected to contribute to 7digital's revenues for 2018 and beyond," 7digital said.
It added that Progress continued to be made with regards to publicly launching other client services.
Altair Engineering, to which 7digital provides access to music and technology services, launched its service WEYV streaming service in the US lkast month.
French company Deedo SAS launched its pan-African music service in France, Senegal, Mali and Ivory Coast. Launches in a further 23 territories are planned by 2020, including 16 in Africa, 5 in Europe, the USA and Canada. 7digital provides technology, access to music and web app development for the Deedo service.
German broadcaster Klassik Radio has also launched its radio streaming service 'Klassik Radio Select', focusing on classical and associated genres. 7digital provides Klassik Radio with access to music under a deal announced in Q1 2016.
Klassik Radio has significant support from the industry and has to date announced several long-term license agreements with music labels Universal, Sony and Naxos.
Simon Cole, CEO of 7digital said: "The further development of our relationship with MediaMarktSaturn strengthens an already fruitful relationship with a key player in Europe's electronics and entertainment retail market, and further underpins our 2018 revenues."