10th Jun 2014 10:54
LONDON (Alliance News) - 7Digital Group PLC said Tuesday it has inked two partnership agreements since its creation via the reverse takeover of 7 Digital Group Inc by UBC Media Group PLC in May.
UBC acquired 7 Digital for GBP16.5 million in an effort to grow in the digital music market.
The company said that whilst the new contracts will not lead to a change in market expectations, they would shift its revenue mix towards streaming and away from downloads.
The digital music and radio services company, which was readmitted to trading on AIM Tuesday, signed one agreement with online streaming service Guvera.
Guvera will use 7digital's software platform for its expansion into India and Middle East. Guvera's streaming service is currently pre-loaded in the mobile handsets of China's Lenovo Group Ltd. It currently has 800,000 active users in Australia and the US.
Additionally 7Digital entered into a partnership with Japanese hi-fi company Onkyo Corp to bring its digital music store to the US and Europe in the coming months.
Shares in 7Digital were trading up 3.4% at 33.60 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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