|7dig are MQA"S partner B2B
That relationship is valued today at ZERO yet we already have been told by 3 different sources that 7Dig will benefit massively from MQA this year.
All can be found in the top post but to re - cap
A / At CES 2017 in January 2017 MQA have said they expect 4 or 5 MQA streaming services to be up and running in 2017.
B / In an printed interview at around the same time 7dig said THEY ARE working on a number of Hi Res streaming projects.
C / UMG last week said 5 - 6 MQA streaming services will be starting in 2017.
7Dig started on the first Hi Res MQA streaming service last year as reported in the half year 2016 accounts.|
Quarterly recorded music streaming revenues brought in $413 million. Physical sales were down 13.4%, but still brought in $833.6 million. However, in the first nine months of 2015, physical sales brought in $971 million. Streaming compromises 36.4% of recorded music operations whereas physical accounts for 26.6%, downloads 19.4%, and licensing and other revenues 17.6%. Last year, physical sales brought in 31.6%, streaming 25.5%, downloads a strong 24.4%, and licensing and other revenues U 18.4%. You can check out MBW’s helpful chart below for the 3Q 2016.
If one looks at the growth of streaming it's gone from 25% to 36% of revenues in just one year. In the next 3 years that will grow towards 80% as digital music grows and (MQA ) for the first time offers better quality of listening than was ever available in the past.
Physical sales will fall off a cliff as will downloads to be replaced by standard and MQA streaming.|
|Simon Cole of 7Dig after 10 seconds at MQA'S launch event.
MQA and Universal Music Group (UMG), the world-leader in music-based entertainment, announced that the companies have entered into a multi-year agreement that will encode UMG’s extensive catalogue of master recordings in MQA’s industry-leading technology, promising to make some of the world’s most celebrated recordings available for the first time in Hi-Res Audio streaming.
The announcement comes shortly after the launch of the cross-industry marketing campaign “Stream the Studio”, launched at the 2017 Consumer Electronics Show in Las Vegas and spearheaded by The DEG: the Digital Entertainment Group, to raise awareness of the advantages of Hi-Res Audio streaming.
Mike Jbara, CEO of MQA, commented, “We’re very pleased to be working with Universal Music to achieve our goal of moving studio-quality sound into the mainstream. Universal’s timeless catalogue and impressive artist roster will fuel music streaming services worldwide and enable the premium listening experience for all music fans.”
Michael Nash, Executive Vice President of Digital Strategy at UMG, said, “The promise of Hi-Res Audio streaming is becoming a reality, with one service already in the market and several more committed to launching this year. With MQA, we are working with a partner whose technology is among the best solutions for streaming Hi-Res Audio, and one that doesn't ask music fans to compromise on sound quality for convenience. We’re looking forward to working with Mike and his team at MQA to make our industry-leading roster of artists and recordings available to music fans in the highest quality possible.”|
|Beng Ti Tan Congrats MQA; this is lightning speed to get hold of the biggest library of music on this planet. It's early days but when it works MQA encoding transforms the listening experience. Music is felt rather than only heard. However, as listeners we really implore that each mastering is genuine and done to studio analog standards; there seem to be some albums that for some reason are limited to 44.1 and/or have limited improvement in listening quality. Bon courage and thank you for #takingmethere.
8 · Yesterday at 01:04|
Hate to say it but we are so very different.
I can't for the life of me understand this 3% max of a portfolio more like 33% in my case.
Two big things we all choose in life a wife and a house.
Now you don't accept second best for either of them, unless you cheat.
If you max is 3% :I accept it's a well known standard,: its like saying I have not got any more confidence in this stock than I have in my other 33.
To my way of thinking you find a tiny number of shares the very best of the bunch and GO FOR IT.
As for bonds again I am at a total loss.
As we all know the chances of the worlds bonds ever being repaid is ZERO.
They are the riskiest investment I can imagine when the time comes which it will, country after country will default.
That debt has grown 300% in the last few years V average wages of 15%|
|Just to add if you truly have millions, lets say 2m at 6p you have 120,000 invested. Now collective wisdom states that no individual stock holding should make up more than 3% of your portfolio, especially a high risk company like 7dig.
As i expect you are very wise then you must have a total portfolio of cash/bonds/stocks etc of approx 4 million I am surprised you are posting on here every day unless of course you have taken an almighty gamble and feel the need to ramp the stock on an hourly basis!
Saying all that each to their own but be careful. And thanks for keeping it civil - different views and my posts are just banter but please be careful to take some profits as you go or i will not sleep well on your behalf! Until Monday and have a good weekend.|
Thanks for that post.
Delivery has been a massive issue for 7Dig the reason the market cap is not £40M today.
Looking at a few points a tad deeper.
£1M of cost savings have been made.
New contracts have been won and the new year started well.
Looking back at previous years does not inspire confidence, agreed, but if you looked at my old school records nor did they.
My basis for investment here is recurring revenues high margins and growth.
Recurring revenues are growing last accounts
Margins are going up last accounts
Turnover is also growing and forecast to grow.
So long as those trends stay intact the required results will be achieved.
No tax to pay for years and years I think over £20M
I just think if your going to invest in a stock you can only do so much we both know it's a risky task and can go wrong for a variety of reasons.
7dig has been around for ten years and not gone bust, in far more unfriendly conditions than we have today.
Your points are fair and robust and at the end of the day you or I could have called it correctly.
I personally don't think the shares will be at this level in 3 months time as more MQA announcements arrive including Sony the last of the big 3 to officially show their hand.|
|Trading profit is just another name for operating profit, and operating profit and net profit are very different Operating profit only covers the gross profit minus direct operating expenses, net profit all gains and losses and tax payments by the company.
Surplus operating profit by no means equates to positive net profit.
'They say they intend to be profitable this year 2017' Rather similar to all firms trading at an annual loss. The proof is in the delivery which many small companies fail to get to!
'7dig revenue model' is just that - an unproven model. The operating model is a facilitator to the business model. What is not clear is that their operating model is sustainable and solid enough to withstand a number of potential 'disruptive' events (risks)
It is your perogative to interpret the information in the public domain as you see fit and wear your rose tinted specs but this firm has a long way to go and looking back they don't inspire confidence.
That said the trading pattern this year has been interesting and caught my attention. I see trading opportunities here = presently on the buy side but my main worry is an overdue macro correction which will demand some to seek liquidity. Not an issue for you as a LT holder but I think you need to step back and make sure you portfolio is allocated correctly and not skewered towards a minnow..but good luck - who knows it could be the one that beats the pack but it usually isn't.|
7 dig forecast, and has made a loss for the last year 2016: you are correct.
They also made a trading profit in the last 1/4 of that year.
They have also said they intend to be profitable this year 2017.
Yes I have bought millions at 6P after the directors bought last fall.
"Missing the risks"
Half revenues are recurring.That gives huge comfort.
Turnover high margin at that, is also growing.
The market,took no notice of my other share, for 18 months based, on the same criteria recurring revenues high margins and growth.
Then they woke up and are now happy to buy in quantity £420,000 blocks, at 8 times the price they could have if they had read my thread when I started posting.
At 7dig the shares will respond to profits but I personally don't want to be the buyer at 8 times today's price.
The all time low has been 5P for 7Dig so you can't say your paying over the top right now at 7P.
If you look at the 7dig revenue model you will see they grow at the same rate as their clients who are also growing very very fast.
Worldwide streaming music growth is running at 60%
|But you are missing all the risks and your valuation is based on unestablished revenue streams. Your personal view and that of the market are at completely opposite ends of the spectrum. Yes the market can get it wrong but only a 'show me the money' style rns will get it anywhere near your hopes.
And if you truly believe the mismatch you have spotted versus the mkt then no doubt you have millions of shares tucked away as it such a steal.
Tell me what is net profit for the last company tax year?|
The above start up that hopes to hit profits in two years time has been valued at £32M.
7dig is in profit today and worth about £7M|
NOTE the valuation.
Then look at 7 Dig valuation.
Then note that 7Dig is long established.
Then note 7dig has the market covered for MQA the new world standard for digital music
Then note Worldwide Radioplayer
Then note 7 Dig has all 3 record labels as clients.
I think that PROVES that today's valuation is based solely on 7dig 's past record of non delivery.|
Take a look at the companies revenue
Old poor margin digital downloads with margins of 7% being actively run down.
Being replaced by very high margin licensing and streaming services of 80% margin.|
|Just a five fold increase in the share price upto 37.50 of course no problem....erm....|
|Stocks seem to get valued on sentiment not hard numbers otherwise EVRH would not
be over £100 mil valuation.
The herd will turn up again soon and chase this up into double figures.
Be worth the wait.|
I have to disagree it requires a five fold increase in the share price and a profit forecast for 2018 of £2M on a tax free PE of 20.
That is not unreasonable and could possibly be achieved in 2017.
The groundwork has been done the market is booming and the company is in profit right now.|
|utter rubbish if you think that it should be around £40m when current capitalised in single digits.|
|A billion pounds might be a fraction optimistic :-))
But there could be 50-100% short term, it has spiked 6p to 16p last year in no time which was over 150% so anything is possible.|
|Director buying last year when they would have known plans for this year.
"Keep it real."
OK : IN BLACK AND WHITE
It's true value today should be around £40M based on what's in the public domain
It you take on board what Mr Cole said last year then your looking at a Billion pound company a few years out.|
|just noticed that the head of Technology at 7digital used to work at Sony Music: Https://uk.linkedin.com/in/sam-madeley-966ba622|
|Director buying? anything this year? keep it real but headed upwards unless runs into a macro market correction which is not far off|
|7digital has all Three Record labels as clients.|
|EVRH @£110M valuation V £8M here.
7 Digital is in profit.
Has over half its income in the form of recurring revenues
New year started well
Just for starters.|