(Alliance News) - 7digital Group PLC on Monday said it has won a two-year contract to supply music for creators on Lomotif.
Shares in the London-based music licensing provider hit as high as 0.22 each pence in London early Monday, but pared gains to trade 3.5% higher at 0.18p each in mid-morning trade.
Lomotif is a Singapore-based social media company, which has developed a short-form video-sharing platform. 7digital said that the company has a "significant presence globally", notably in Asia, Latin America, West Africa and the US.
7digital said that the initial agreement will cover licenced major label content in the app's current territories and will accommodate expansion in content from newly licenced labels as well as usage. Lomotif will use 7digital's music-as-a-service platform to stream licensed music and clips directly to its end users.
The contract will cover a two-year period, though financial terms were not disclosed.
7digital Chief Executive Paul Langworthy added: "This contract also reflects the increasing transitioning of our pricing model to align revenue with usage that expands as the customer grows. We are at an exciting inflection point where our deal momentum is providing significant improvement in revenues and each new contract adds to our growing base of recurring licence fees, with contracted licensing revenue for 2022 already surpassing 2021 levels by 21%."
By Sophie Rose; sophierose@alliancenews.com
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