Member Article

Digital music service 7digital posts £7.9m loss as streaming outpaces downloads

London-based b2b digital music service 7digital Group plc has posted a 310% increase in revenues from monthly streaming subscriptions, despite making an overall loss of £7.9m.

The digital firm saw monthly recurring revenue (MRR) from its streaming services jump to £3,450,000 for the year ending 31 December 2015, up from £842,000 the previous year, according to its preliminary results posted to the London Stock Exchange today.

At the same time, the Group’s MRR from downloads fell by 15%, dropping to £935,000 from just over £1.1m in 2014.

The figures mark a change in focus for the digital music provider, and the industry as a whole, as it attempts to realign its business and revenue streams towards radio and b2b streaming licensing.

7digital is banking big on streaming and licensing deals with the likes of BBC, Red Bull House Media and Global Radio to turn the business into profit, with particular focus on big players in international radio who are looking to expand their digital activities.

Simon Cole, Chief Executive, said: “I am pleased with our progress in 2015. The Group delivered against its key objectives of growing its customer base across an increasing range of geographies, strengthening the quality and resilience of its revenue base and improving its overall financial performance.

“Our pipeline is strong, with a healthy number of current customers looking to expand their activities and, as of the year end, discussions were underway with over 60 new prospects across a range of services and geographies.

“Our acquisition of Snowite, with accompanying revenues and enhanced technology, is on track. We remain confident that the Group will achieve profitability by the end of 2016, and of continued good progress this year and beyond.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →