7digital wins contract with Chinese social media firm

11th Mar 2021 09:12

(Sharecast News) - End-to-end digital music solutions provider 7digital said on Thursday that it had been selected by Chinese social media giant Kuaishou to power music in its applications worldwide.
7digital has signed a long-term contract with an expected term of 24 months with Kuaishou Technology to provide the Chinese firm's mobile apps with licensed music globally.

The AIM-listed firm said the deal strengthened its revenue visibility as it includes a set-up fee, a monthly recurring access fee and a usage fee.

Chief executive Paul Langworthy said: "This long-term contract expands 7digital's footprint in this high-growth sector, making us one of the largest providers of licensed music to global social media giants and tech-driven consumer brands.

"Collectively, across all of 7digital's contracts in this space, we enable 1.0bn average monthly active users to access one of the largest music catalogues in the world powered by us. This latest partnership exemplifies the breadth and depth of our capabilities and is expected to be a significant contributor to our revenue growth in this market segment."

As of 1120 GMT, 7digital shares had surged 42.40% to 1.82p.