CUSTOMERS, CONTRACTS AND CHAMPIONING ARTIST MONETISATION - Mar
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INVESTOR NEWSLETTER March 2022
CUSTOMERS, CONTRACTS AND
CHAMPIONING ARTIST MONETISATION
In this month’s newsletter, 7digital reflects on its newest customer, as well as customers won and
contracts renewed during Q1, and dives into artist rights, exploring how 7digital supports music
monetisation.
CEO Foreword
Page 2
Artist Monetisation
Page 3
B
Quarterly Round Up
Page 5
Industry Insight
Page 7
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Investor Newsletter CEO FOREWORD March 2022
WELCOME TO 7digital’s MARCH 2022
INVESTOR NEWSLETTER
March saw the publication of the International Federation of the
Phonographic Industry’s (IFPI) annual Global Music Report, showing
music streaming is the key driver of growth in the recorded music
market. That’s perhaps no big surprise to us at 7digital but is great to
hear. The market grew 18.5% in 2021 with streaming accounting for
65% of the total $25.9bn revenue. IFPI represents the interests of the
recording industry worldwide. Read about its findings in this issue.
Paul Langworthy Our leading B2B digital music solutions enable companies to create
CEO compelling experiences for their customers in fitness, social media,
artist monetisation and other spaces. We added some exciting new
contracts and expansions to our client roster during the first three
months of 2022.
Finally, the closure of venues during the pandemic threatened many
musicians’ livelihoods. 7digital has worked with partners on innovative
ways to bring music to worldwide fans and ensure artists can make
money from their work. In March, we signed a contract with a client
whose new platform is designed to better meet the monetisation
needs of rightsholders. We report on how 7digital has championed
artist monetisation.
As ever, I look forward to bringing you more 7digital news in the next
newsletter.
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Investor Newsletter ARTIST MONETISATION March 2022
NEW CLIENT IS GREAT FOR 7digital AND GREAT
FOR THE MUSIC MAKERS
In March, 7digital signed a two-year contract
with a new music and data platform designed to
“This multi-year contract is
better meet the monetisation needs of the a further great win for
rightsholder community.
7digital which will contribute
Artist monetisation became a particularly to our growth,”
pressing issue during the pandemic, with many
said 7digital’s CEO Paul Langworthy.
musicians who relied on income from live
performances struggling to make ends meet
during the lockdowns. 7digital has worked with
partners and clients on innovative ways to bring
music to fans, help artists make money, and
capitalise on demand.
“This multi-year contract is a further great win for
7digital which will contribute to our growth,” said
Paul Langworthy, CEO of 7digital.
“It is exciting to bring in a new customer from a
very strong pipeline of new business and work
with them to build their service offering, which is
further proof that demand for music in all its
forms has never been stronger. Organisations
today need products that are flexible and
innovative, and making music more accessible
and streamlined is one of the most effective
ways we can help more businesses succeed and
grow the industry.”
This new customer will be using 7digital’s music-
as-a-service platform in the US and Canada to
feed music to their B2B content platform. The
service is expected to launch later this year.
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Investor Newsletter ARTIST MONETISATION March 2022
MONETISATION MATTERS
Streaming has led to massive changes in the and created new opportunities for musicians and
way people consume music. In the UK currently, other rightsholders to reach wider audiences. It
80 per cent of music is consumed through provided a lifeline to musicians and performers
streaming (BBC, July 2021). Music is integral to during the pandemic. However, rightsholders
many other digital activities, from home fitness sometimes struggle to capitalise on this boom and
?
to gaming, social media - and beyond. monetise their work.
Streaming has given more choice to consumers
In January 2022 the UK Competition and
Markets Authority (CMA) launched a year-
long study. Music streaming had
transformed the music landscape,
enhanced the consumer experience,
restored growth and saved the industry
WHAT IS A RIGHTSHOLDER? from piracy, the CMA said. Streaming
made it easier for new artists to share
their music, however, despite ‘clear
benefits’ artists, songwriters and
“In the music industries, any entity that owns or has performers did not always manage to
been assigned or licensed one of the main rights in earn a decent income.
music. The main rightsholders in the case of sound
Whether through 7digital’s backend
recordings will often be a record company or label
reporting solutions for music licensing
but is increasingly a featured performer. The main
clients, the eMusic Live platform or
rightsholders in the case of compositions or songs
customers such as the new music and
will usually be a music publisher or a collecting
data platform for the rightsholder
society but will sometimes be a composer/
community, 7digital supports the
songwriter if they have retained their rights.” –
monetisation of music and the right
Music Creators’ Earnings in the Digital Era (UK
payment being received by the right
Intellectual Property Office).
rightsholder.
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Investor Newsletter QUARTERLY ROUND UP March 2022
7digital MAKES GOOD PROGRESS IN Q1
Every day, millions of people around the world connect to
music apps powered by 7digital.
The company’s leading B2B digital music solutions give
clients the tools to create compelling customer
experiences, across social media, home fitness, music-
as-a-service, artist monetisation and beyond.
7digital’s roster ranges from household names to
growth businesses. Early 2022 saw some exciting new
contracts and contract expansions.
Here’s what the first quarter looked like.
JANUARY
New Year sees expansion in home fitness 7digital hit a major milestone in January with a
space & partnership with leading music new partnership between its joint venture eMusic
promoter Live and Goldenvoice, to livestream Cali Vibes, the
world’s premiere reggae festival. Fans in 72
The company announced a new multi-year
countries tuned into the event on Long Beach
contract in January with the leading provider of
over three days from 4-6 February. One online
fitness and training services to Nordic countries.
viewer described it as ‘probably the most
SATS was the latest fitness brand to harness organised, pleasant experience of a LIVE concert
7digital’s music-as-a-service platform to integrate that I have seen’. The event brought a new level
popular music into its cutting-edge ‘Mentra by of customisation for the artists taking part.
SATS’ experience - a new product in the growing Performers, who included big names like Marley
market for home training. It’s a market where Brothers, Shaggy and Slightly Stoopid, could fully
7digital continues to make strides. The Mentra brand their performances and make money.
interactive home fitness concept includes Goldenvoice is part of AEG group, one of the
hundreds of live and on-demand workout world’s biggest music promoters – its clients
sessions using connected bikes, treadmills and include Justin Bieber, Shawn Mendes and the
mirrors. The contract added to 7digital’s Rolling Stones. AEG also owns some of the world’s
impressive roster of home fitness clients, leading venues such as London’s O2.
including Barry’s, FORME and Volava.
5
Investor Newsletter QUARTERLY ROUND UP March 2022
FEBRUARY
Multi-year expansion boosts growth
An extended multi-year contract signed in February
and worth more than two million euros is enhancing
7digital’s revenue visibility and growth.
The contract, with an existing customer of seven years
standing, was for a minimum of 2.2 million euros over
three years. But as the fast-growing customer seeks
to extend its reach into new territory, new licence
agreements would be required. The expansion was a
vote of confidence for 7digital’s world-beating digital
music solution.
“Our success in offering a great quality
service and platform is reflected in the
customer’s commitment to a long-term agreement,”
said Paul Langworthy, 7digital’s CEO.
MARCH
New client great for 7digital, great for
rightsholders
7digital signed a contract this month with a new music
and data platform designed to meet the monetisation
needs of rightsholders. Artist monetisation has always
been a key 7digital priority.
The new customer will be using 7digital’s music-as-a-
service platform in the US and Canada to feed music
to its B2B content platform. The service is due to
launch later this year.
6Investor Newsletter INDUSTRY INSIGHT March 2022
IFPI GLOBAL MUSIC REPORT 2022
In March, IFPI – a multinational organisation that represents IFPI reports that in 2021 the global recorded music market
the interests of the recording industry worldwide – released grew by 18.5% to $25.9bn, with streaming being a key driver
their annual Global Music Report into the ‘state of the in this (accounting for 65.0% of global revenue).
industry’, which highlights the resilience of the music
industry as it continues to expand.
“One thing for
certain is that now
the vast majority of
18.5% 65%
Global Recorded Music Streaming market
artists are curious Market Growth contribution to global
and excited about recorded music market
these sorts of
possibilities [such
as virtual concerts
within gaming].”
$ 25.9bn 24.3%
2021 Global Recorded Growth in Global
said Tiago Correia, Music Industry Revenue Streaming Revenue
Warner Music Group.
So, why such momentum in the streaming sector? IFPI put how it can build an audience and how it benefits them
this down to the “work and investment of record companies generally. And we’re excited to be on that journey with
who are helping to develop music markets around the them.”
world” and are “driving opportunities for fans to engage with
While Dorothy Hui, SVP, Digital & Audience Development,
music in new and increasingly diverse ways.”
4th Floor Creative, Sony Music Entertainment, says: “Music
Quoted in the article is Tiago Correia, Senior Director of has always been at the core of fitness, health and wellness,
Global Business Development, Warner Music Group, who and what we’ve witnessed is this having evolved into a well-
comments “One thing for certain is that now the vast established opportunity for music to capture listening
majority of artists are curious and excited about these sorts outside of traditional streaming platforms.”
of possibilities [such as virtual concerts within gaming].
For further insight into the evolving music industry, the full
Previously, around half of our artists would probably have
report can be accessed here.
said, ‘You know what, this isn’t for me’. Now it’s more about
asking questions, exploring the creative possibilities, seeing
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