7digital secures two-year contract with Lomotif
Digital music solutions group 7digital has won a new two-year contract with Singapore-based social video-sharing app Lomotif.
7digital said on Monday that its initial contract with Lomotif will cover licensed 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 stream licensed music and clips directly from 7digital's music-as-a-service platform to their end-users, with the AIM-listed firm's platform also automatically filtering for label clearances so that the app can only access fully licenced parts of the catalogue. 7digital also added that Lomotif will utilise its full-service back-end label and publisher reporting solutions.
Financial terms of the deal were not disclosed.
Chief executive Paul Langworthy said: "As a leader in end-to-end music solutions, 7digital has supported some of the biggest social media companies in the industry throughout their tremendous growth, and it's great to add another rising social media platform to the roster.
"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 license fees, with contracted licencing revenue for 2022 already surpassing 2021 levels by 21%."
As of 0945 BST, 7digital shares were up 3.49% at 0.18p.
Reporting by Iain Gilbert at Sharecast.com