B2B end-to-end digital music solutions firm 7digital's (LON:7DIG) shares are trading higher on Thursday after the company announced it has signed a 24-month contract with FORME Life, with the deal expected to be a significant part of the revenue contribution from a growing market segment.
The contract will see home fitness system FORME Life's trainers utilise 7digital’s music platform-as-a-service to access a licenced catalogue to cache or stream music content that can then be synchronised with a training video and played on-demand and live.
A fully cleared music catalogue will also be accessible via 7digital's playlist curation tools filtered for both label and publisher clearances for true end-to-end rights reconciliation.
7digital will additionally provide backend label and publisher reporting.
“Our label relationships and advanced technology have positioned us as the leader in home fitness solutions by providing seamless music integration to live and on-demand programming,” said Paul Langworthy, CEO of 7digital.
“The deal, which is key to our strategy, is expected to be a major part of the revenue contribution from this growing market segment to overall revenues in 2021,” he added.
The company's shares jumped on the news to 1.645p, although they’re now trading at 1.450p, up 1.75% on the day.
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Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.