Mother’s Day is a busy time for music streaming and video service One Media IP Group.
The group owns a catalogue of 250,000 songs and 10,000 hours of videos from a string of artists dating back to the fifties, sixties, seventies and eighties.
Every time one of its songs is streamed it gets paid a small amount.
Spotify, Amazon and Google all take content from the company and many of the playlists you see on these sites will have been specifically compiled by One Media.
Spotify, Amazon and Google all take content from One Media IP Group
Putting together songs for specific occasions, such as Mother’s Day, into genres or periods for music streaming providers is a handy way to boost the earnings from its catalogue.
Knowing the songs that go well together, though, is not the reason the share price has risen almost four-fold over the past few months.
That is down to Ivan Dunleavy and Michael Grade, two of the UK’s best-known media titans, buying into the group and joining the board late last year.
Grade is the ex-chief executive of Channel 4 and former chairman of the BBC, ITV and Pinewood Studios, while Dunleavy ran Pinewood for 17 years until its sale in 2016 for £323million.
Michael Infante, One Media’s chairman and chief executive, says the pair did not come on board with the intention for the company to remain valued at under £10million.
Grade and Dunleavy have already made a handy return on their investment.
Between them, they bought £375,000 worth of shares at 2.5p, an investment that is now worth £1.35million after the recent spike in the share price to 9.5p.
But it’s not just the involvement of these two big–hitters that is sparking interest in One Media.
Infante believes the music industry is in the middle of yet another sea-change in the way content is delivered and his company is front and centre of this movement.
Forget purchases or downloads, subscription services and streaming are the way forward, which plays into the hands of companies with a catalogue of popular songs such as One Media IP.
It is a myth artists earn less through streaming, according to One Media IP Group’s boss, who cites the 30billion downloads of Ed Sheeran songs over the past year
Infante says it is a myth artists earn less through streaming, it just depends how popular they are. He cites the 30billion downloads of Ed Sheeran songs over the past year.
Sheeran is not one of its artists, though people of a certain age might remember the Troggs, Mungo Jerry, and The Tremeloes, which are.
Music is also licensed for background music in films, adverts, video games.
Evidence of an improvement in the company’s fortunes showed through in the latest results.
Revenues rose by 14 per cent to £2.33million in 2017, while underlying profit jumped 121 per cent to £536,000.
Sales to rise to £ 2.8million this year, with profits of £600,000 are house broker Panmure Gordon’s forecasts.
‘Album and track downloading is giving way to the subscription-based and advert-funded method of consumer music buying,’ stated Infante.
Driving this is the increasing use of voice –activated devices such as Amazon’s Echo/Alexa and Google Home.
Infante believes that once the tipping point in use of these devices is reached, there might even by be a shift in the balance of power in the industry back toward the content provider/owners again.
While music and video streaming dominates the business now, One Media IP has started to explore other areas and notably the tech space.
TCAT, a copyright and content search tool, has picked up its first orders including a contract with an international record label.
The business enables streamed music to be tracked and web stores using it unlawfully to be identified and brought to book.
OneMediaIP has also moved into more customised content.
The group recently bought rights to the Men & Motors series, which it has repackaged as a clips programme, something that generates many more views than the original format.
Other clever things are in the pipeline, says Infante, who has also identified music publishing as an area undergoing a similar renaissance to streaming.
Panmure Gordon upgraded its price target to 15p following the latest results, which, it said, confirmed the company is moving forwards again.
Increased confidence that the music cycle has turned adds to the feeling, said the broker, while the presence of Grade and Dunleavy will allow it scale up the business.
In short one to watch.