7digital Share Discussion Threads

[sweenoid] 09/2/2015 07:47

Nice revenue earning RNS

7digital supports e-Onkyo's expansion into Europe and the US

7digital (AIM: 7DIG), the digital music and radio services company, announces that its partner Onkyo Corporation ("Onkyo"), has today launched e-Onkyo, its hi-res music store in the United States, the UK and Germany.

7digital first announced its partnership with Onkyo in June 2014, when it entered a global hi-res music agreement with the aim of working together to offer e-Onkyo music, the high definition digital music store previously only available to Onkyo's customers in Japan, to a wider, global audience.

The service is currently in beta and can be accessed via hxxp://www.onkyomusic.com, as well as through custom built native apps for Android and iOS. There are hundreds of thousands of 24-bit/44.1kHz and up to 192kHz hi-res tracks and millions of CD-quality 16-bit FLAC files. The new store will cover genres from pop and soul to jazz, folk and classical.

Onkyo, who provided the first high-res audio [download] service in Japan in 2005, will use 7digital's platform to power the service's core functions and support the expansion by accessing its catalogue of songs from the world's leading record companies.

7digital receives monthly recurring revenues for access to its platform and these fees increase incrementally as territories are added.

Simon Cole, CEO of 7digital, commented:

S

[sweenoid] 06/1/2015 08:02

Nice RNS this morning

It shows that 7Digital are capturing niche markets worldwide-lots of business to be done in the global streaming market

Going back to yesterdays IMG news if IMG via their Caskeid system can stream PERFECT PURE sound ( as it was recorded and unadulterated) using 7Digitals platform THERE HAS TO BE A MARKET .......AND A BIG ONE

S

[folderboy] 06/1/2015 07:12

Halleleugh

[sweenoid] 05/1/2015 15:55

Recent news has proven that streaming music is now superseding downloading it -great for 7 Digtal as THATS our business model

Some nice news from IMG today around their wireless streaming Caskeid IP

Imagination will be working closely with 7digital, a leading digital music platform and MQA supporter, to ensure its licensees have access to a rich catalog of MQA encapsulated tracks that can be streamed to Caskeid-enabled speakers.

Read more:

:)

S

[qs99] 19/12/2014 07:38

nice little piece of news IMO

[loobrush] 15/12/2014 12:06

In my view price has dropped too low. I think there is lot going on behind the scenes that we will hear about in the new year. Boom and 7dig have some same shareholders and directors and only just getting going into their new strategies which we will probably only understand fully when the price has moved up
I understand that there was a visit by a number of institutions last week and if some come on board -well!
Could be a share that if you don't hold now you could miss a big rise especially if the yanks get interested in Boom or 7Dig as well.
Current broker value 28p

[qs99] 15/12/2014 11:49

Indeed, finally some blue on 7dig

[dirty75] 15/12/2014 08:11

some decent news out from AudioBoom. Amazon Deal.

[qs99] 15/12/2014 07:06

Nice BOOM RNS this am...

[qs99] 11/12/2014 14:27

Yup, don't disagree Smithie6....

[smithie6] 11/12/2014 14:16

I guess it partly depends on whether they can turn around the cash burn rate....
if not, then the cash from sale of BOOM shares might be gone time of next results

(when I last did a calc. , cant recall if last results or results before....but needed to multiply turnover X3 in order to break even, which is not pretty
was it scaled up turnover of 10M/yr while losing 5M/yr ?,

pays ya money takes ya chance !

seems a bit strange that fallen so much recently without some press article or RNS
unless there is some +ve news out there from a competitor...
(although the chart looked weak, rolling off a peak area, imo)

[qs99] 11/12/2014 08:21

BOOM share price now moving back up again, 7dig stake IMO looks to have a c.£7m valuation, add the cash it has from last sale and previous RNS, less cash burn etc and the underlying business is being valued at a v. low level. Any views on this?

[qs99] 10/12/2014 12:55

thankfully 7dig have cashed in a decent chunk of boom to fund its growth so for me this is an interesting entry point....high risk, but potential bagger etc..

[smithie6] 05/12/2014 17:32

Good luck with it

yes, only my opinions to add to the melting point....
in 1 or 2 years time the mkt should know how the co. got on !

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'very strong boards'
stronger than they were ! but we each have differing views

(imo 2 MDs with poor records (7dig and UBC) doesnt produce good results just by putting them together imo......but I agree that the other new board members do add experience etc)

I would give R.Proctor at Boom 10/10......done a very good job since arriving...but whether the Boom shares are already fully or over priced is another question (I sold my few Boom shares around 12p X months ago on the way up) (high cap. value for almost 0 turnover)
...I hope the Boom project goes well....but a long way from turnover and profit at the moment...

[loobrush] 03/12/2014 18:06

That's your view Smithie-we will see what the price of BOOM is by Xmas (as 7Digital still hold a bundle of these) and 7dIGITAL's price, I bet you both are higher. Both have very strong boards and both aiming to get a lot bigger with loads going on behind the screens.

[smithie6] 03/12/2014 17:36

Finncap
"7digital is substantially undervalued by the London market."

(if I recall Finncap were involved in the merger ....they made money from the merger...and one assumes have clients invested...they have no choice but to write +ve stuff !....or their clients would want their 7DIG merger money back !

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Would I pay 21M to buy all of 7DIG, losing 6M per year on turnover of around 10M, if I had the money.
No.

Will it come good in time ?
Who knows....but with cash burn of 6M/year at the moment..and deals announced mostly with non-trading or non-existant companies so far..it doesnt look pretty to me.


ROK Mobile- starting operating in summer 2014...for first time....
ie. no turnover !

Guvera, the same !.

Will,I.am. The same !

you try paying 6M op. loss from any income from clients that have just been created and have no turnover !...cant pay wages for ever with RNSs !

[smithie6] 03/12/2014 17:31

Loobrush
"In the first half, 7digital generated just £5 million of revenue as sales of low-margin music downloads fell, and it lost almost £2.8 million."

the loss per year is hence almost 6M
..it is very easy to do some sums to calculate the amount of turnover needed in order just to breakeven never mind make a profit....

X months ago I calculated it as needing X3 turnover to break even

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Will.I.am
in competition with Beats for headsets and Apple, and everyone else for worn devices....
where I think the Will.I.am device is only a demo device...
while Beats headsets are on TV being worn by football stars and in music videos every day....
difficult not to bet that Beats would/will win


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SC
money was raised from a subsidiary sale....
.....all then slowly smoked if my memory is correct....UBC ended up with tiny cap. vaue in the merger with 7DIG...was it 6M and without the value of the Aboo stake it would have been perhaps 2-3M, close to cash held.....ie. that rest of SCs years of work were valued closed to 0 !

(while noting that Aboo stake did work out well, however SC imho made a complete and utter hash up of it
he sold most of UBC stake in Aboo at 1.5p/share when a few months later the mkt values it at 13p/share !!...around 10 times higher
UBC shareholders imo lost a lot of money
....imo one couldnt have made a bigger mess up
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Here is UBC long term chart if you dont believe me. A ski ramp downwards !
listed at 250p in current money, now 20p !!

[loobrush] 02/12/2014 17:12

Smithies6

I think you will see at next update your reading that "Looks to me like all these contracts are actually worth very little." may prove not to be the case.
The comments in the Rns About Will. I.aM -will make no material difference to financial results-refers to this year only-not next year or the year after.

It is also not correct that Simon Cole has never produced good results-he made a substantial amount of money in the sell off of one of the subsiduaries a few years ago and has been using some of that cash ever since to invest in new businesses, 7Digital & Boom. Both of these are in the new leading edge of music/news.advertising companies.Both at early stages and both/either could turn out to be massive winners. Time will tell, but I expect some excellent news from both shortly to show what progress they are making behind the scenes.

[smithie6] 02/12/2014 16:38

"someuwin 21 Nov'14 - 08:53 - 343 of 351 0 0

Funnily enough, the last contract (the will.i.am watch one) also wasn't expected to make much difference to the numbers.

Looks to me like all these contracts are actually worth very little. Which backs up recent press reports of the questionable viability of music streaming services like spotify etc."

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One has to imo be very careful with any RNS from Simon Cole

if you read the RNSs he issued at UBC over last 10 years it appears that they were about to strike oil (so to speak) ....over and over again...
while the results and share price just drifted down...and down.

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Even recently before UBC merged with 7Digital....SC was going on about the app part of the co. and the services provided to Yahoo...
that all came to nothing....and subsequent turnover from those areas was down a lot.

Since listing in the early 2000s.....SC has imo never produced good results....but has continually used up co. cash. Currently has high cash burn rate, 400-500k/month.
One problem imo for 7DIG imho is that it is up against such big rich competition, Apple (Beats, iTunes), Google, Amazon, Spotify, Pandora, Vodafone and their streaming partner (Spotify I think) et al.

Beats headsets can be seen being worn by football stars, music stars, in music videos on TV, ....very difficult to compete with such wide exposure.....and if something becomes 'cool' then it can drive sales, regardless of whether it is the best VFM ....Apple stuff is an example.

Another concern I have is the large number of middlemen....which imo wont last for ever...and minimises the % to each middleman

(music group, music publisher (say Sony Music, Warner), 7DIG (for streaming), owner/operator of streaming servers (not 7DIG I think), comms link operator (say O2), payments processor, ....)

and from that limited %...is it enough to pay the high op. costs of 7DIG or ever pay a divi !

[loobrush] 24/11/2014 11:50

Well monte you clearly are not a supporter of 7dig, however I think that you need to do a bit of research to see what this company is up to.
It is not clearly understood by many as it does have several diverse income streams, however a big change is underway here with some really exciting prospects
plus its Boom stake.
Lee wild who wrote the iii piece is quite a shrewd journalist and a lot of his tips have done well.
As I said the Will.I.am deal will be announced soon and you will then see recognition of the prospects in the share price as more analyst cover it.
Also a lot of the shares are locked in for a year so not a huge amount in free float.

[monte1] 21/11/2014 13:40

A house broker tipping teh shares of a company it is paid in connection with - who would have thunk it?