7digital Share Discussion Threads

[iwillbe] 22/5/2017 00:08

Old I know but it does explain 24/7 which we are all waiting news on.

Fingers crossed any day now.

[pet lover] 21/5/2017 21:24

The spark could arrive any day.

I myself am on the lookout for these new MQA streaming services.

Who are the partners.?

I say this because 7dig have a stated policy of only going after the big boys, and until they ( not 7dig) put out news it's a waiting game.

Tiger60 you are correct, this could be big,everything points to just that.

[pet lover] 21/5/2017 17:07

Don't forget MQA delivers music in various price bands.

ONE FORMAT FOR ALL.

Saves costs all round.

MQA is being embedded in new products as they are made.

[pet lover] 21/5/2017 16:30

All the worlds music is spot on.

The fact no one will be buying it ( records CD'S and cassettes )

The fact your car, TV , computer, will have all the worlds music stored within a single chip.

The record companies did their evaluations.

They have since spent the last year converting content to MQA.

The public have never heard of MQA.

Just start to factor in when something triggers investors to think like myself,rather than the more cautious types that have posted here.

The change is massive and it's only just starting,Just like the Dying High Street, the whole way music is delivered is changing.

The MQA platform is the key.

[rapier686] 21/5/2017 15:44

Nice list bloomer2, though I feel you overstate some of it.

(b) All the world's music is a lot of data. And close to all the consumers is a lot of places to keep it. It doesn't make sense for every man-and-his-dog to keep their own copies ready for worldwide delivery. I think 7DIG have identified a good niche where they provide this service and it's worth everyone's while, including the bigger guys, to use it instead of doing it themselves.

(c) Maybe, but less gloomily it's capturing the synergy of (b) for themselves.

(d-f) I rather agree and struggle with the tension between this little lot and management's claim that they're now operationally breaking even.

(g) I feel it's more a question of how much MQA success will rub off on 7DIG. But I agree it's nothing like as clear as petlover believes. Despite all the quotes.

[pet lover] 21/5/2017 14:47

Bloomer2

Well, we certainly don't look at 7dig in the same light.

Margins are increasing and the competition has just about disappeared.

The Majors may well use sites run by 7dig at a route to market,after all 7 dig are working on a number of MQA sites right now.

MQA will be a huge success simply because it can be used for various price bands,it only requires one master copy, its built for streaming,and artists will demand it.

7dig are buying up others for a song,24/7 is predicted to produce £1M next year.

Company made an operating profit in the last 1/4 last year.

The market is growing rapidly.

Milton fund and its manager with a rather good track record is backing them to the hilt.

Director buying.

Worldwide record player.

[bloomer2] 21/5/2017 14:11

A few reasons for tempering ones enthusiasm:-

a) Cole does not have a great track record when it comes to delivering shareholder value.
b) The nature of this business is never going to be huge. The major players in this market will have their own platforms for streaming music and the smaller players are in many cases not established businesses where the risk of failure is high.
c) 7Digital are having to buy up bits of business because they do not have sufficient "critical mass" to make a profit on their existing business.
d) Monthly Recurring Revenues fell last year.
e) Operating losses have been increasing year on year.
f) Payables were at a record high last year of £6.7m.
g) It still has to be seen whether MQA will be a success.

[pet lover] 21/5/2017 08:44

Tiger60.

I find it incredible that you have found such a fantastic growth share, yet you can't see it.


That said,their are plenty of other listed companies that fail to spark investors interest up to the day large profits are announced, particularly companies like 7dig who have failed to deliver in the past.

Have a nice day.

[tiger60] 21/5/2017 07:45

But MQA have the upper hand. Business is business and they may find a better deal elsewhere or warner, sony etc could cut out 7dig. You seem to ignore the risk and continually talk as if they are more than business partners.

If i knew details of the licensing agreement maybe we call all breath easier but at the moment it is unclear hence a risk

[pet lover] 20/5/2017 21:37

HYDRUS

What I am saying is this.

When 7dig were signed up they were the first, at the time MQA had their directors and two office staff.

7dig have been working with MQA hand in hand ever since.

The rewards FOR BOTH COMPANIES will I believe be huge over the next few years.

[hydrus] 20/5/2017 21:31

So what you are saying 7DIG are providing some kind of resourcing support?! How would that create huge returns for 7Dig? It's all a bit tenuous.

[pet lover] 20/5/2017 21:28

In 2016 MQA had just 14 employees inc the directors.

That might give you a better understanding as to why they needed, and need 7Dig.

When 7dig first signed I think MQA had around 8 employees, inc the directors.

[pet lover] 20/5/2017 21:25

The numbers are not their yet, but with around 5 new streaming services due to go live in 2017 AND most of the worlds music being in MQA format within the next four weeks AND 80% of the industry signed up,its game on.

[tiger60] 20/5/2017 21:18

My valuation is not zero. Very presumptious of you but what i find strange is you agree the numbers are not there yet you say the share price can go up 5 to 10 times. What is that calculation based on (and dont say pe ratio of 20 with 500,000!)

[pet lover] 20/5/2017 21:15

The 3 big music labels own chunks of MQA.

[hydrus] 20/5/2017 21:13

Not zero - but nothing at all here currently to suggest this will ten bag as you suggest I'm afraid.

[pet lover] 20/5/2017 20:30

HYDRUS and Tiger60.

Your valuations of the above, are, I believe next to Zero.

MQA will, I also believe be the only music streaming format in the world as it's the best for all parties.

[pet lover] 20/5/2017 20:23

From the 2016 accounts.

- 7digital the only b2b delivery platform for MQA

[pet lover] 20/5/2017 20:20

HYDRUS.

EXCEPTIONAL GROWTH.

All that's required is few million of extra turnover at high margin.

[tiger60] 20/5/2017 19:52

Tend to agree and it is a risk I have noted and thats why we need a breakdown of revenue and an understanding of the details and lengths of the contracts. We can only guess which is not very scientific.

I still believe the ball is in 7digs court and as such we could be one company statement away from clarity and opening up a door to investor enlightment. For one explain how the Warner deal with MQA benefits 7dig finacially.

It is a relatively easy thing to do and would really help investor sentiment as if I am struggling to make cashflow projections i am sure others are as well.

[hydrus] 20/5/2017 19:05

Yes but MQA have the agreement. Not 7Dig. The only way 7DIG could make good money is if they got a small fee per stream. I think there is little chance of that as the other companies involved will be raking in the profits in that way. I suspect 7DIG will just have a fixed contract for their services. That won't result in exponential growth.

[pet lover] 20/5/2017 18:57

Shows yet again just how close MQA and 7Dig are.

[pet lover] 20/5/2017 18:57

7digital Welcomes Partner MQA's Licensing Deal With Warner Music LONDON (Alliance News) - 7digital Group PLC on Monday said it was pleased to "congratulate" its ...
Alliance News9 May, 2016 | 8:07AM Email Form
LONDON (Alliance News) - 7digital Group PLC on Monday said it was pleased to "congratulate" its partner MQA Ltd on its long-term licensing deal with Warner Music Group Corp.
This comes after record company Warner Music Group and sound technology company MQA entered into a licensing deal on Friday to enable Warner to offer high resolution downloads to its customers.
MQA, or Master Quality Authenticated, was launched in 2014 by Meridian Audio and, in December 2014 7digital signed a global partnership with Meridian Audio to adopt the sound technology. In 2015, Meridian Audio spun off MQA into its own company MQA Ltd.
Earlier this year, 7digital said it became the first business-to-business provider to offer MQA through electronics manufacturer Onkyo Corp's hi-res audio store onkyomusic.
7digital said the deal MQA has now signed with Warner Music is a "significant step towards achieving industry-wide adoption of the MQA high resolution music technology".