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I highly recommend reading the below research article on MUSIC consumption by Matthew Ball.
Matthew Ball is the Managing Partner of Epyllion Industries, which operates a pre-seed and seed venture fund, as well as a corporate and venture advisory arm. He is also a Venture Partner at Makers Fund. From 2016-2018, Matthew served as the global Head of Strategy for Amazon Studios, and prior to that was a Director at The Chernin Group's Otter Media, a digital media investment company founded by long-time Newscorp COO and 20th Century Fox CEO Peter Chernin.
https://www.matthewball.vc/all/audiotech
I've also attached the Equity research note on Music from Goldman Sachs from May 2020.
https://www.goldmansachs.com/insights/pages/infographics/music-in-the-air-2020/report.pdf
See extract below re: Music licensing (7Digital have 80 million + tracks in their music catalogue).
Emerging opportunities for music licensing, e.g. short-form video, e-fitness While the traditional $9.99 / month on-demand subscription model continues to dominate much of the growth in music industry revenue, we are seeing new ways in which companies and record labels are monetizing music in sync with technological innovation. Short-form music and music-based video content has grown quickly, driven by the growth of global social video applications such as TikTok, which features 15-second videos often set to music. TikTok has reportedly been downloaded more than one billion times since its launch in 2017 and has a global reach of nearly 400 million monthly unique visitors, spending over 10 minutes per day on the platform (per comScore). These platforms enable incremental consumption of music appealing to varied, and often younger, audiences, while presenting the potential to amplify artists and set cultural trends — a trend that is accelerating through the COVID-19 crisis. This could also Exhibit 62: We expect ad-funded streaming revenues for record labels to grow at an 11% CAGR over 2020-30 to reach US$11.4 bn in 2030 Ad-funded streaming revenues, 2014-2030E (record label share, $bn) Exhibit 63: Music accounts for 22% of total views and 5% of content on YouTube YouTube -
At £30 million MCAP, I think 7Digital is a great medium/long term investment....with potential for a spike around the time of the Triller IPO (which is due to commence it's proceedings in June)
I think we have 2 weeks at most to invest in 7digital at these low levels..then we have the Big 3 catalysts.
1 - Triller IPO (which should explode from expected $5 billion valuation)
2. 2020 results (June 30 latest)
3. Broker note for full year 2021 guidance and Valuation (I expect 100 million +)....which is 3x from here.
I appreciate the frustration of many who have bought in above the placing price (2p)....understandably so...
Good luck all
Attachments area
On fire today Solomon. Mid-term plus is the key. Ie fine to trade non-core holding short term if the opportunity arises, hold the rest for the catalysts.