4th August 2015
• Turnover of £1,487,132 (2014: £1,492,412);
• Profit before tax of £270,454 (2014: £345,570);
• Cash balances of £1,016,994 at 30 April 2015 (£1,219,466 at 31 October 2014);
• Dividend of 0.071p per ordinary share paid in November in respect of the year ended 31 October 2014; and
• Interim dividend declared of 0.071p per ordinary share declared in respect of the six month period ended 30 April 2015.
Outlook from Chairman and Chief Executive Michael Infante
‘Streaming’, or ‘Screaming‘ as the Music industry seems to be greeting the transformational medium shift, is becoming the emerging method of choice for digital consumers and we welcomed the arrival of Apple’s new streaming initiative at the end of June, ‘Apple Music’. The music market perception is contentious between rights owners and the digital distributors and this has to play out, we are 100% behind their initiative. The list of artists and trade associations alike that have resisted the change has been slightly appeased by the recent U-turn by Apple on its “Free for Three” deal as I call it by a ‘sticking plaster’ token royalty rate, but in my opinion the resisting content owners are just going to be proven as ‘coming late to the party’ and not just ‘fashionably late’. To date, we have successfully navigated the curves, but there is a small price to pay for this in the short term.
The news from Apple Music regarding the 3-month consumer trial with the low royalty rate from inception will seem a mere bagatelle 18-months from now. Increasing understanding of how our business may grow in the future and having the insight that I believe One Media has, has served us well to date. The speed with which the music market is evolving presents exciting prospects for us. Where there's confusion, there's opportunity and it's just about ensuring best value for the business.
Content is the most important element of any music store and without content it can deliver nothing. Apple Music’s only fault is that it is 2 years too late, but it will catch up. The 3-month trial is costly but long-term it will prove good for content owners. I cannot predict how many iTunes users will switch to the new service but in all honesty from a One Media point of view, I hope they all do. Our content has achieved a higher yield of transactions on Spotify than on any other downloading store over the last three years, including Amazon. Our type of content, nostalgic back catalogue, performs well on streaming stores. My view is that consumers are more likely to experiment with tracks for their playlists when it does not cost them £0.99p to add. Last year in America, album downloads fell by 9% whilst on-demand streaming soared by 54% (Source: Sunday Times 14/6/15). Apple are reported to hold details of over 800 million credit cards. I believe that this will greatly add to its power of persuasion to its customer base. My view is that Apple’s target of 100 million subscriptions over the forthcoming period makes them a serious contender to Spotify and will rewrite the music consumption landscape moving forward. Spotify launched in 2008 in Scandinavia with just a few thousand subscribers; it now boasts 75 million users in total with 20 million of them paying a monthly subscription. The use of ‘Freemium Access’ was their most compelling route to market. Apple’s approach is different, initially the 3-month free trial engenders commitment. During that time the consumer will have built new playlists and stopped paying the track download rate. Not every Apple user will convert, but those who do and the new Apple Music adopters, will enjoy access to over 13 million tracks of great music catalogue with a depth that hitherto they have not yet explored through the previous destination downloading method. Who wants to spend money on something you may only play a few times? When paid for subscription on streaming hits ‘critical mass’ it can only benefit the music industry.
One more crucial point in this ever-changing music market place. As Streaming grows, the Group has the opportunity to market its music directly with consumers via playlists. We can better engage with our nostalgic music fan base and better understand its behaviour and habits, as well as identify territories in which our fans are based. This can only assist with our acquisition program to buy more of the content that suits One Media’s market.
The outlook for the music industry is very positive, but there are still adjustments to manage whilst the stores fight it out for supremacy. Our video exploitation is growing at a steady rate with YouTube and we are very encouraged as our eighteen video channels gain further traction. In the last 12 months we have achieved over 276 million minutes of viewing on our YouTube channels, bringing the total since launch in 2013 to circa 1 billion minutes of viewing. Income from our channels continues to grow month by month as more territories switch on to an ‘Ad-Spend’ model. Emerging territories such as Vietnam, Tunisia and Morocco have been added to the monetised list of countries this year, with more set to follow. Whilst the debates and discussions on Apple Music are set to continue, we must mention our excitement about whispers that the best-kept secret within the industry, Google’s YouTube ‘MusicKey’ which is due to launch later this year. This long awaited music site from YouTube is a paid music streaming subscription service. The service is an extension of Google's existing store, Google Play. The All Access ‘Music key’ service, along with the existing audio-only streaming functionality provided as part of All Access, adds integration with YouTube to provide ‘advertising-free’ streaming of music videos hosted by the service. With YouTube’s 1 billion active users each month, they are certainly the dark horse amongst the pack.
We believe that the Group is positioned correctly both technically and from a content perspective to benefit from the changes within the industry moving forward. Margins (due to reduced rate card trials widely reported in the press) will be challenged but we are a stringently run organisation with a focus on our cost centres and exploitation partners. Opportunities for further acquisition of content and development are paramount to our operation and despite some pending industry turbulence we remain positive on the outlook of our business. We value the integrity of our copyrights and the new emerging consumers that will be embracing music and video through the many new digital stores that are yet to launch.
One Media iP Ltd has acquired the Dr Who spin off drama DownTime, directed by Christopher Barry (1925-2014) the longest serving director on the original series of Doctor Who.
Downtime was originally released in 1995 direct-to-video by Reeltime Pictures Ltd and features the characters The Brigadier (Nicholas Courtney) and Sarah Jane Smith (Elisabeth Sladen) and tells the story of New World University, a sinister school run by none other than Victoria Waterfield (Deborah Watling)
and a gateway to Earth by the Great Intelligence which has manipulated her.
Written by Marc Platt, Produced by Keith Barnfather, with Associate Producers Ian Levine and Andrew Beech, the show stars many actors from the original Dr Who cast including Elisabeth Sladen who went on to find renewed fame in 2006 in the spin-off series The Sarah Jane Adventures, and Nicolas Courtney who reprised his Brigadier role opposite her in 2008.
Christopher Barry was the longest serving director on the original series of Doctor Who (1963), directing episodes over a duration of 16 years between 1963 and 1979, and was one of only three directors to direct episodes starring all of the first four actors to play the Doctor (William Hartnell, Patrick Troughton, Jon Pertwee and Tom Baker).
Producer Keith Barnfather was delighted, “One Media have a great reputation for bringing creative works to the widest possible audience and I’m thrilled they’ve taken this on. Downtime deserves to be seen by Doctor Who fans and film fans alike. I can’t wait to see what they do!”
Michael Infante, One Media Chairman commented “Doctor Who fans will finally be able to get their hands on this forgotten gem.” A digital & DVD release is expected to come to market before the end of 2015, containing a brand new documentary of the ‘Making of Downtime’ as well as other unseen bonus footage.
Today Apple launches a new streaming music service. Here’s what you need to know before you jump in.
Apple Music is a brand new on-demand music subscription service offering access to Apple’s complete music library for £9.99 a month. The service combines your own purchased music with Apple’s catalogue of 30 million songs, letting you listen to specific artists, or check out personally curated music from the service’s music editors. Instead of having to spend £0.79 every time you want to purchase a new track your subscription buys you full access — but unlike it’s competitors Apple’s service will be curated by humans, not algorithms, and that will better help you find the music you like to hear. The Apple radio will also have real humans doing the curation.
Our view… the decision to try out the new service is a no-brainer. It’s free for three months and finally being able to combine your downloads with a streaming service that ultimately delivers you more of the music you love in a way that Apple only can…
What does this mean for content owners? Well, Apple have been responsive to our concerns and owners will still be paid for streams during the free trial. We are confident that the finalised deal is in the best interests of all of our label clients and we are excited about the prospects of this new service.
Having achieved the YouTube channel management best practice standards across several specific subject areas called “certification tracks” which include YouTube Platform and Channel Strategy, Creator Strategies for Sustainable Viewership, Audience Development Strategy and Methods, Google sales, Monetisation, YouTube Analytics and Reporting, Copyright, Rights Management, Content ID Misuse, YouTube Live, One Media now have seven YouTube certified employees.
The team also had to hit other key criteria goals that include actively managing channels through Content ID, accelerating views and supporting growth, improving curriculum, sustained operational business, and the on going compliance with all YouTube policies, including Terms of Service and Community Guidelines. The Certified Company Status certification is valid for 12 months from the date of issue.
One Media’s CEO Michael Infante commented “It’s fantastic to get the recognition from YouTube for the work our dedicated YouTube Technicians have put in to building our Multi Channel Network. Inclusion in this programme is limited, so this is a great achievement for our team and reflects our on going commitment to working in this exciting arena. With 8 Billion users, YouTube is certainly a very important part of iP consumption moving forward.”
Directed by Emmy and Bafta Award winner Francis Vose, Zot the Dog is the newest addition to the One Media family. Voiced by Phil Cool, this animated classic made in 1996, tells the adorable story of two friends sharing humorous and zany adventures together. Adapted from Ivan Jones' best-selling books and originally broadcast in 1998 as a 13-episode animated series for the UK's ITV. The series was commissioned by Vanessa Chapman, then the Controller of Children's and Youth Programmes at ITV and produced by Philip Lowrey.
Previous successes of Vose include the BAFTA award-winning ‘The Wind In The Willows’ and International Emmy winning ‘The Fool of The World and The Flying Ship’, whilst Phil Cool is best known for his work on Spitting Image.
“Zot will be in good company, joining the likes of Skippy and Sooty.” said One Media’s CEO Michael Infante “This is a very strong genre for us, we already represent the very successful ‘Songs for Children’ audio catalogue which features children’s classics read by the likes of Rik Mayall, Judy Dench, Anita Harris, Lenny Henry & Bobby Davro. We are always looking for strong content to add to our roster and Zot certainly fits the bill.”
Zot the Dog tells the tale of Zot, a good hearted, fun loving but rather bouncy dog and his best pal Clive. Together they embark on many adventures in the countryside as they discover a wonderful, uncomplicated world where all of the animals talk...except Zot, who doesn't need to!
One Media iP is pleased to announce it's attendance at this years Midem, THE LEADING INTERNATIONAL BUSINESS EVENT FOR THE MUSIC ECOSYSTEM held in Cannes, at the Palais des Festivals, from 5-8 June 2015. The team will join 6,150 participants and 1,236 exhibiting companies from 75 countries, building and expanding their international network. One Media's Chairman Michael Infante commented "Midem gives you the opportunity to stay on top of industry trends, enlarge your vision, dig deeper into subjects that are at the core of our expertise and learn best practices in the fields of music, technology, creativity, innovation, brands and agencies. We've always prided ourselves as being one step ahead of the curve, and Midem is a great opoprtunity to meet other influential and bright leaders in music, brands and technology."
To arrange a meeting with one of the One Media team attending the conference please email:
Point Classics News One Media iP Group (AIM: OMIP), the digital media content provider, which consolidates, exploits and monetises intellectual property rights around music and video is pursuing a lawsuit in the USA against Believe SAS ("Believe Digital Group"), S.A.A.R Srl and Henry Hadaway ("HHO Licensing Ltd and Henry Hadaway Organisation Ltd") that was originally filed by Telos Holdings, Inc. d/b/a Point Classics in April 2014. In July 2014 One Media acquired the Point Classics Catalogue ("the Catalogue") from Telos Holdings Inc./Point Classics, LLC in the USA (see RNS dated 3rd July 2014) for a consideration of USD$1.6m. The Catalogue comprises 4558 US copyright registered Classical tracks by the world's leading composers. A significant number of tracks (no less than 1,466) have been identified by One Media as being unauthorised for exploitation worldwide by Believe SAS (a French Company) pursuant to an alleged physical license granted by HHO Licensing Ltd to S.A.A.R Srl (an Italian Company). The litigation is being prosecuted by One Media in the Federal Court in Nashville Tennessee and is being defended by Believe SAS and S.A.A.R Srl on the grounds of improper jurisdiction despite widespread worldwide exploitation by Believe SAS and SAAR, SrL both in and out of the USA. “We consider that it is important to protect our rights and that of our strategic partners. We have been forced to litigate in this matter to protect the rights engrained in our asset to prevent unauthorised exploitation of this important acquisition."
Synchronisation News There has been an increasing number of ‘tune placing’ over the last quarter. We have been successful in placing music from our own library and that of our strategic partners in some high profile broadcast opportunities, including adverts for: BMW and Toyota. From the world of TV and Film, we have had placing’s in the forthcoming Minions Movie, a track in the American series ‘Nashville’ ‘The Messengers’, ‘The Originals’, ‘Flash’, ‘Stereotypically You’, ‘Anitra's Dance’, ‘Looking’ and a show on Fox/FX Networks called ‘Wayward Pines’ to name a few. Monetising music through Film & TV is a strong way to get your content noticed and it does bolster your download opportunities especially if the tracks are relatively unknown.
Industry Update A recent trade study of the music business during 2014 (reported by Musically) established that digital revenues worldwide were up 6.9% in value last year (2014) to $6.85bn. The growth was stunted due to downloads (the iTunes model) dropping by 8% overall (10.9% for single tracks and 4.2% for digital albums). Streaming (the Spotify model) was up by 39% ($1.57bn) representing 23% of total digital income, taking up the slack caused by the loss in download revenue, (CD sales were down by 8%) streaming up by 18% on 2013 with Spotify, Deezer, Rdio, Napster, Tidal and others achieving 41million paying subscribers. This represents a growth of over 500% since 2010 and a 40% increase over 2013. Global sales as a whole including all formats were down 0.4% overall. The industry feeling is that this is encouraging and suggests that the market drop since the turn of the millennium is reaching a turning point. The industry will have to watch 2015 very carefully as to how much music sales (CDs and downloads) decline this year and monitor the growth in streaming versus the fall in other formats to establish the shape of the evolving music industry. One Media's end of year numbers for October 2014 showed turnover growth of 9.5% and normalized profit increase of 21.7% over the previous year (the 2014 reported pretax profit increase was 95% after AIM cost attributed in its 2013 numbers). "As a small business we are able to manage the 'curves' and respond quickly said Michael Infante OMIP's CEO "Our strengths are in our diversification across all the media platforms including YouTube, which remains the 'dark horse of streaming income, with now over 1.5bn users. Profitable monetisation is a ‘long wait’ for Spotify, as they are purely a delivery channel. As a content owner, we are profitable, debt free, cash resourced and paying dividends. Sure we have grown slowly but unlike many of our peers, listed or private, we have remained very positively ahead of the pack."
Artist News Ivor Novello winner, Mungo Jerry (Ray Dorset) famed for the global hit ‘In the Summertime’, which is estimated to have sold a staggering thirty million recordings and is now ‘officially recognised as the most played summer song of all time, will be releasing his exclusive new album ‘Good Times: Some Hits & More Stuff’ through One Media in June 2015. This will celebrate 45 years of ‘In The Summertime’ Just right for the Summer now – get the B-B-Q out, but don’t take the obligatory instructions to “Take a drink take a drive go out and see what you can find”. The picture below, which was featured in our end of year Reports and Accounts, demonstrates One Media’s routes to market and monetisation process of the music and video content exploited by the group.
One Media is also delighted to announce it is the exclusive distributor for Juliette Ashby. If you’ve not yet heard her name before, you soon will. A singer-songwriter from London, Juliette has a beautifully soulful voice, which is put to great use with an irresistible mix of R&B, Reggae and Neo-Soul. She has triumphed at some of the world’s most renowned festivals, including the Isle of Wight Festival and SXSW, and given outstanding performances at Perez Hilton’s ‘One Night In Austin Party’ and the ADD52 event hosted by Def Jam’s Russell Simmons. Having received support from BBC 1Xtra and MTV, Juliette secured a licensing deal with VH1, and broke the top ten of the prestigious ‘Next Big Sound’ chart with Billboard. Despite this heady success, Juliette can still be found performing at London’s Jazz Café where she hosts her very own music night. ‘JJ’s Soulshack’. New album ‘Over & Over’ is due for release on 26th May 2015 with One Media and will feature the likes of US sensation DA BRAT. With her unique and compelling sound, it can only lead for more success for this amazing artist. We definitely think Juliette Ashby is a name to look out for. A little taster here https://www.youtube.com/watchv=LLT93plxqdc
One Media Music & Vision
High octane motoring shows.
Classic Rock and Roll
Imagine if Elvis wrote a diary...
The Best bits of Classical Music
The Best of Britain
Enjoy heart-warming episodes
Enjoy classic episodes
Concerts & documentaries
Motorcity & Northern soul
The best nostalgic music videos
The worlds greatest artists
Indie Rock Music Videos
All about animals.
80's TV 'The Unforgettables'
A Gerry Anderson creation
Laugh out loud