7DIG.L Regulatory News (7DIG)

21 November 2014

7digital Group plc

("7digital" or "the Company")

Contract wins

7digital (AIM:7DIG), the digital music and radio services company, announces two new contracts that demonstrate strategic progress in the areas of hi-resolution digital music and streaming radio services.

Panasonic Hi Resolution Music Service

7digital has been appointed by Panasonic to launch a new hi-resolution music service under their iconic Technics audio brand. 'Technics Tracks', a service enabling music lovers to rediscover tracks and albums from an exceptional catalogue of 24-bit hi-resolution audio, will be available in the UK and Germany from January 2015. The service has been custom built for Technics by 7digital with music purchased on the platform stored in a cloud locker ready for download to multiple devices, with customers of Technics audio hardware in mind.

Radioplayer To Launch in Ireland

Also today, the Company is pleased to announce that the Radioplayer technology, which gives listeners easy access to streamed radio services and which 7digital licenses internationally, will be launched in Ireland for mobile devices by early December 2014. Following deals for Radioplayer in the UK, Germany, Belgium and Norway, the Irish radio industry has now agreed to adopt the technology. National broadcaster Raidió Telefís Éireann (RTÉ) and the Independent Broadcasters of Ireland (IBI) have agreed to licence the Radioplayer technology for an initial three year term.

Both contracts involve upfront payments and monthly recurring revenues, which underpin the Company's revenue expectations for the current year.

Simon Cole, CEO of 7digital, commented: 

"Today shows great progress in two areas identified as key growth drivers: high quality audio and streamed radio. The 'Technics Tracks' service is an extremely exciting partnership for us. We have identified connectivity in the home as a major opportunity and have invested in our hi-resolution catalogue and capability ahead of this demand. The re-launch of Technics represents a fantastic opportunity to showcase these capabilities in partnership with a visionary audio company and one of the world's leading hi-fidelity brands. At the same time, our new relationship with the Irish radio industry means that more than 650 radio stations will be using Radioplayer as their streaming platform."

Director of Brand Strategy for Panasonic, David Preece said:

"Technics Tracks' will be a vital tool for us to deliver the perfect overall premium audio experience. We understand the uniquely emotionally-engaging experiences that listeners crave for when playing their favorite tracks and see the remarkable revelations that music lovers have when they experience true hi-resolution music delivered by our scintillating new hardware. We're incredibly excited to be driving the growth in hi-resolution music availability. Now we want to make the experience of exploring the highest-quality music formats more engaging and more accessible than ever before."

JP Coakley, Director of Operations, RTÉ Radio said:

"This is a big step forward by our mature industry; bringing simplicity and variety to digital listeners on a strong, robust platform with tons of potential".

ENDS

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About 7digital

7digital aims to simplify access to the world's music and radio. Their robust, scalable digital music platform and flexible APIs are used to power comprehensive music and radio services for leading consumer brands, mobile carriers, broadcasters, automotive systems, retailers, record labels, artists and agencies. Alongside proven technology, they offer global music rights, award-winning radio production services, and content management expertise, making them a leading global partner in this space.

7digital has powered streaming and download services for global brands like Samsung, T-Mobile, HMV and BlackBerry, has partnered with media giants such as Yahoo and Sirius XM, and is the largest independent producer of radio programming for the BBC. 7digital Group is ideally placed to lead innovation at the intersection of digital music and next generation radio services.