7digital reported its financial results for the first half of 2015, which it dubbed one of the first reflections “on which the success of the new company created from the merger of UBC Media and 7digital can be observed.” The firm announced that its gross profit for the first half of 2015 increased 34% to £3.3 million. The company’s licensing revenue rose 26% on-year, while monthly recurring revenues increased by 2%. According to 7digital, the low growth for the latter metric was due to fewer customers providing download service and instead shifting toward customers seeking new streaming services. The company’s net loss for the period was £1.8 million. The losses included selling off its stake in Audioboom.
CEO Simon Cole dubbed the current environment as the Third Age of digital music, a time of developing sustainable solutions for the streaming business. “7digital is a proponent of new business models, such as bundling with consumer devices and mobile contracts (which feel free to the end user), or niche streaming to offer limited catalogues of specific genres of music at new price points,” he said.
7digital also announced that it has integrated Google Cast into its platform. With this update, users can send their music from the 7digital Android app on their mobile device to any speaker, connected TV, or streaming device that works with Google Cast or Chromecast.