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Founded Year



Acquired - II | Acquired

Total Raised






About eMusic

eMusic is a discovery-and-download destination for people who love music.

eMusic Headquarter Location

1991 Broadway 2nd Floor

New York, New York, 10003,

United States


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Latest eMusic News

7digital : 2020 Half Year Report

Jul 1, 2021

07/01/2021 | 03:24pm EDT Message : Interim Results 7digital Group plc (AIM: 7DIG), the global leader in B2B end-to-end digital music solutions, announces its interim results for the six months ended 30 June 2020. Financial Highlights The Company continued to make significant progress on cost restructuring and positioning itself for operational profitability in H2 2020. The new management and board instated in 2019 have transformed the business: Revenues of £3.1m (H1 2019*: £4.5m) Gross margin increased to 66% (H1 2019*: 64%) Administrative expenses reduced by 51% to £3.1m (H1 2019*: £6.4m) Operating loss reduced by 73% to £0.9m (H1 2019: loss of £3.2m) Adjusted EBITDA loss improved 72% to £0.9m (H1 2019*: loss of £3.3m) Fully diluted loss per share £0.04 (H1 2019: loss per share £0.77) Cash and cash equivalents of £4.3m at 28 September 2020 (30 June 2020: £183k; 31 December 2019: £149k) *H1 2019 figures exclude Juke sales and TDC settlement in 2019 as shown in note 2.3 Operational Highlights Repositioned the Company as the leading global B2B music platform-as-a-service (MPAAS) company built to enable innovation and growth in the music industry Implemented new product, commercial and marketing strategies to sign and expand traditional B2B music services o Supported the launch of jazzed, the world's first dedicated audio-visual streaming service for jazz and jazz-influenced music o Added integration with Shopify, the second largest e-commerce platform in a world, to support artist stores through Single Music contract o Contract renewals with several clients including Soundtrack Your Brand, GrandPad and Global Eagle Entertainment Reacted quickly to COVID-19 to prioritise the safety of the workforce and ensure the continuity of client services. The Company's advanced technology in conjunction with increased use of virtualised applications and cloud-based technologies enabled a seamless and secure transition to remote working with no impact on 7digital's delivery and service capability for clients. Post-period Events and Outlook The Company is well-positioned to leverage our technology and services to expand traditional models and support post-COVID growth opportunities in new models and markets such as social media, online fitness, and artist monetisation o On 12 August 2020, company announced contract with Triller to power the world's fastest growing social music video app o Partnered with eMusic to launch eMusic Live, a first-of-its-kind virtual concert and artist monetisation platform o Signed six-month deal with a global technology company to support new music-based experiences o Signed contract with in-home cycling new-to-market Apex Rides, with a pipeline of additional high- profile global companies Raised £6m (gross) in oversubscribed equity placing and £1m credit facility to drive growth in immediate commercial opportunities On track to reach operational profitability in H2 2020 1 Built active customer base from 34 to 45 Strong product-market positioning in traditional music services and value in new markets provided for a bigger pipeline of new clients in H2 than in the previous year Paul Langworthy, CEO of 7digital, said: "We are in unprecedented times, and I am immensely proud of the 7digital team for rising to this new and challenging environment. Our ability to support and improve services for current clients as well as to create value for new markets and models demonstrates the importance of our technology and solutions to a rapidly evolving music industry. Capitalising on 7digital's leading music platform, global music catalogue and industry experience we have remained focused on future growth in a number of emerging market trends and formats where music streaming plays an integral role in customer engagement, such as in social media, home fitness and artist monetisation. We continue to strengthen our platform and position to capture these growing markets and change music opportunities, as evidenced by our recent contracts with Triller, Apex Rides and the launch of eMusic Live. The Group is well capitalised, has financially supportive majority shareholders and a best-inbreed technology platform to capitalise on powerful market trends. As a result, 7digital is on track to achieve operational profitability in the second half of 2020 for the first time and deliver value for our shareholders. Enquiries 7digital is the global leader in B2B end-to-end digital music solutions. The core of its business is the provision of robust and scalable technical infrastructure, licensing expertise and extensive global music rights used to create music and music video streaming and radio services for a diverse range of customers. These include consumer and social media brands, online fitness technologies, mobile carriers, broadcasters, automotive systems, record labels and retailers. 7digital also offers radio production and music curation services, editorial strategy and content management expertise. 7digital fosters industry growth and innovation by simplifying access to music for clients. From years of being the largest independent producer of programming for the BBC and powering services for partners like Triller, Soundtrack Your Brand, Global Eagle, GrandPad and Fender, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services. 2 Operational Review The Group made strong progress in the first half of the year as it executed its strategy to deliver a higher margin, productised technology offering to clients. However, the period was defined by the outbreak of COVID-19. The Company was able to respond rapidly to safeguard the health of its staff, service its clients remotely, and build an expanded pipeline of new customers in strategic growth markets. Strong commercial momentum entering the year Following a year of transformation, in which the Board was reshaped and the strategy updated, 7digital entered 2020 with growing momentum and a strong pipeline of new deals and contract renewals. In January 2020, the Group expanded its client base to support online stores on Shopify, the second largest ecommerce platform in the world used by over one million businesses globally. It signed an initial 12-month contract to support Single Music, a Shopify-integrated platform that enables artists and labels to market and distribute their music and merchandise directly to fans. Similarly, the Group built on its strategy to power music streaming innovators in February by supporting the launch of jazzed, the world's first dedicated audio-visual streaming service for jazz and jazz-influenced music. The Group's Music Platform-as-a-Service is the music engine behind the service, allowing jazzed users to stream music from 7digital's extensive catalogue of jazz tracks. Post period, a follow-up contract expanded the terms of the deal with 7digital supporting jazzed to launch globally in new territories and roll out a new tier of its music service including HD lossless audio. This relationship epitomises the shift away from mass-market,all-you-can-eat subscription models and the growing demand for premium streaming services catering to more specific tastes, genres and geographies. The Group also signed multiple contract renewals, reflecting the strong relationships that 7digital build with its partners and the value of its offering. This includes a contract renewal with GrandPad, the first purpose-built tablet for people over the age of 75 as well as a renewal with a large music group to support its streaming service partnership in France, and fan-facing music playlist service. COVID-19 response and pivot to emerging growth opportunities As the COVID-19 pandemic began to impact markets and businesses around the world, 7digital was fast to protect its employees and ensure the continuity of its operations. The measures taken in 2019 to streamline the business and reduce costs put 7digital in a strong position to manage the impact of COVID-19 and protect the Group's financial position, while prioritising the health and wellbeing of its employees. The Company delivered a seamless and secure transition to remote, cloud-based working where it was able to fully service all its clients with minimal disruption. Although the Company maintained its commercial pipeline, some of these new deals and renewals were shifted from Q2 to Q3 and Q4 2020 with a consequential effect on H1 revenues. In light of this, the Group took the prudent step to implement further cost savings, which are expected to generate in-year savings of approximately £500k in 2021. As a much leaner and more flexible business, with significantly lower overheads, 7digital was able to successfully navigate the immediate market uncertainty and pivot to a pipeline of market opportunities based around its cloud- based, technology service for the music industry. At an early stage, the management team took the proactive decision to further refine the Company's strategy to capitalise on substantial growth opportunities both in the current market and to enable new models in a post-pandemic world. As a result, it has turned its focus to enabling growth and innovation in those sectors where social distancing has accelerated the adoption of emerging trends. In particular, it has built up a substantial pipeline of new business opportunities across the areas of social media, artist monetisation and home fitness. Growing commercial momentum in highly strategic markets in H2 2020 The success of this strategy is reflected in the number of new contracts won post-period in these key verticals. In August 2020, 7digital signed a contract with Triller to power the world's fastest growing social music video app with 3 7digital Group plc its Music Platform-as-a-Service offering. At the time of the announcement, Triller had become the most downloaded app in the App Store in 50 countries, including the US, UK, Brazil, Germany, France and Australia, and 7digital will receive both a monthly licensing fee and usage-based payments to capture Triller's future growth. This reflects the Group's strategy to lead the B2B market by partnering with innovators behind the most exciting forms of music consumption and supporting them as they grow. In addition, in August 2020, 7digital signed a six-month contract on similar commercial terms with a global technology company to provide access to the Company's global music catalogue and reporting services in support of new music-based experiences. Also, in August 2020, the Company partnered with eMusic to launch eMusic Live, a first-of-its-kind virtual concert platform for artists and the wider music industry to monetise online performances. In light of the physical restrictions on live gigs, eMusic Live creates a new way for artists to engage with fans and recoup lost income, however it also paves the way for a new engagement and income stream that in a post-pandemic world, bundling ticketing, music sales, merchandise and collectibles in a single web-based platform. It will be powered using 7digital's advanced technology platform and, as the platform expands, it is expected to also utilise 7digital's trusted expertise in B2B music solutions and flexible services, combined with eMusic's pioneering B2C technology and functionality, to introduce new solutions for the live music industry. 7digital also entered the fast-growing home fitness market by signing an initial 12-month contract with Apex Rides in September 2020. In exclusive partnership with London-based boutique fitness pioneer Boom Cycle, new-to- market Apex Rides provides a full home exercise connected bike and subscription service with live and on-demand interactive classes. 7digital's out-of-the-box solution supports music-based virtual fitness services to access fully cleared and compliant music for programming classes and curating exercise playlists. These are all new contracts in strategic markets for the Company with significant growth prospects. The Company continues to execute its strategy of leveraging its market-leading technology to capitalise on the growth in music streaming and demand for music in new entertainment formats and use-cases. Financial Review Revenue from operations (after adjusting for the Juke sales and TDC contract in H1 2019) was £3.1m (H1 2019*: £4.5m). The gross margin increased by two percentage points to 66% (H1 2019: 64%). The Group continued to significantly reduce its administrative expenses as the business becomes more streamlined and focuses on its productised technology offering. Total administrative expenses fell by 49% to £3.2m (H1 2019*: £6.4m). As a result, the operating loss reduced by 69% to £1.0m (H1 2019: loss of £3.2m) and the adjusted EBITDA loss improved by 69% to £1.0m (H1 2019*: loss of £3.3m). Fully diluted loss per share was £0.04 (H1 2019: loss per share £0.77). Cash and cash equivalents were £4.8m at 22 September 2020 (30 June 2020: £183k; 31 December 2019: £149k) Financing Post period, the Group raised £7.0m to support the growth of the business. In particular, these proceeds will enable 7digital to capitalise on significant emerging opportunities in the markets of home fitness, artist monetisation and social media. On 3 September 2020, the Group announced that it had successfully completed an oversubscribed placing and 4 7digital Group plc subscription. This raised £6.0 million (gross) through the placing of 266,666,667 new Ordinary Shares, all at an issue price of 2.25 pence per share. In addition, the Group today announced that it has entered into a £1m secured revolving credit facility ("RCF") with Investec Bank plc. The RCF adds non-dilutive financing to the placing and subscription announced earlier in September 2020. The funds set the business up for a sustained period of growth, building on the Group's leading global position in the expanding market of B2B music streaming. Outlook The Company's decisive response to the COVID-19 pandemic and £7m financing during September 2020 has positioned 7digital to capitalise on significant growth markets. Streaming is being adopted by consumers at an increasing pace, accounting for 56% of all music sales in 2019 and driving a fifth consecutive year of growth, according to the IFPI. The lockdowns implemented as a result of the COVID-19 pandemic have only further accelerated this adoption, leading to a rise in home entertainment streaming as well as other formats. The Group has identified a number of emerging trends for which it has a strong product market fit. Management see meaningful growth and revenue opportunities from well-funded and enterprise businesses that consider music a vital component in their own customer engagement and growth strategies. These sectors include: Social media platforms: following the success of TikTok and the popularity of video and audio inclusive user- generated content, the Group is discussing opportunities with several such companies that provide either similar services or more disruptive variances to the existing offering (as with Triller) Virtual-livemarket: this rapidly emerging live stream market is attracting much attention, including the launch of eMusic Live, and the Group expects servicing operators in this space to become a valuable new pillar in the 7digital ecosystem Home fitness: building on the deal with Apex Rides, the Group is currently engaging with a number of fitness companies looking to incorporate digital content, ranging from virtual cycling and running to more traditional gyms in this $94 billion global industry 7digital's leading technology offering, global music catalogue and industry expertise makes the Group well placed to capitalise on the growing demand for digital music services to improve existing customer offerings and power new entertainment formats. Even with the impact of COVID-19, the Group entered H2 2020 with more customers and a higher sales pipeline than it entered H2 2019. The Group is well capitalised, has financially supportive majority shareholders and a best-in-breed technology platform to capitalise on powerful market trends. As a result, 7digital is on track to achieve operational profitability in the second half of 2020 for the first time and deliver value for our shareholders. 5 This is an excerpt of the original content. To continue reading it, access the original document here . Attachments

  • When was eMusic founded?

    eMusic was founded in 1995.

  • Where is eMusic's headquarters?

    eMusic's headquarters is located at 1991 Broadway, New York.

  • What is eMusic's latest funding round?

    eMusic's latest funding round is Acquired - II.

  • How much did eMusic raise?

    eMusic raised a total of $34.5M.

  • Who are the investors of eMusic?

    Investors of eMusic include TriPlay, Universal Music Group, Atlas Venture, Carlin Ventures, Clearstone Venture Partners and 10 more.

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