London South East interviewed 7digital CEO Paul Langworthy just after the latest contract win with a global technology company was announced. He wasn't able to tell us much about it other than it further proved their global capability, robustness and scale as "the best in the business". Paul told us that "its as much about the opportunity ahead of us as what we have achieved already".
His mantra is that we are consuming music differently Post-Covid, and new markets for streaming music are emerging. "These include home fitness, the way that music is consumed in social media, and artists who have lost their main touring revenues and are desperate for new revenue models and ways to monetise their art".
Home fitness, a 94 billion dollar industry is a good example. "People are increasingly exercising at or from home and consuming music is part of that experience - and I don't believe its going to go away. We can supply music to multi-billion dollar Enterprise Home Fitness companies with money to spend and invest on exciting music strategies".
7digital recently signed their second agreement with the music video app Triller, who have the most downloaded music video app in 50 countries. Triller are a significant player in this space, and it was sufficient to drive the share price 100% higher on the day.
"The new agreement is for 18 months and commercial terms are confidential, however we charge Triller an access fee to our platform and we have useage fees on top of that. Their success drives success for 7digital as well. Their main rival is TikTok and its well know TikTok have problems in the US".
The share price shot up again when President Trump signed up for Triller, possible researching for an alternative to Chinese-controlled TikTok. "It's true, even President Trump has a Triller account" confirmed Paul. "What that does do is cement Triller's position at the top table of social media platforms".
7 digital has an 80 million strong music back catalogue and it provides streaming services to global clients. In Paul Langworthy's words, "7 digital is about enabling innovation and growth within the music industry for our clients and their customer base. Our business model is about offering access to our platform, often for a monthly access fee, and then on useage. As for strategy, its about taking advantage of the new opportunities which are out there."