Shares of B2B music streaming company 7Digital Group PLC (LON: 7DIG) fell up to 5.5% despite the company clarifying that Universal Music Group (UMG)’s decision to pull its music catalogue from Triiller had zero impact on its finances.
Universal Music pulled its music catalogue from Triller claiming that the platform has withheld payments due to its artists and has refused to negotiate a licensing deal to govern the two companies relationship from now on.
7digital clarified that Triller still has an 18-month contract with the company signed in August 2020 and that the contract has not changed. Investors are worried that Triller might cancel its contract with 7digital if UMG does not reverse its decision.
UMG’s decision will likely significantly impact Triller in the future, given UMG’s position as the biggest music company globally with licensing rights to millions of songs by major artists.
UMG did not mention 7digital in its decision to pull its music from Triller, which means that the firm was not part of the decision for now.
7Digital share price.
7digital shares plunge 5.51% to trade at 1.63p having dropped from Thursday’s closing price of 1.725p.
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