Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

One Media IP in right place with right connections as streaming comes of age

Ivan Dunleavy and Michael Grade, two of the UK’s best known media titans, bought into the group last year
Something by the Troggs or Mungo Jerry maybe?

Big developments look to be on the horizon of music and video streaming specialist One Media IP Group PLC (LON:OMIP).

It’s why Ivan Dunleavy and Michael Grade, two of the UK’s best-known media titans, bought into the group last year said Michael Infante, One Media IP’s chief executive.

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 £323mln.

Handy return already for power pair

They have not come on board with the intention for OneMedia IP to remain an £8.6mln market cap company, Infante told Proactive.

Indeed, Grade and Dunleavy have already made a handy return on their investment.

Between them, they bought £350,000 worth of shares at 2.5p, an investment that is now worth £1.35mln after the recent spike in the share price to 9.7p.

But it’s not just the involvement of these two big–hitters that is sparking interest in One Media IP.

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.

Subscription the way forward

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.

Infante says it is a myth artists earn less through streaming, it just depends how popular they are.

He cites the 30bn downloads of Ed Sheeran songs over the past year.

Alas, he is not on OneMediaIP’s roster but what it does have it’s a string of artists from the fifties, sixties, seventies and eighties and 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.

WATCH: One Media iP 'carving a new niche' and pursuing big opportunities in publishing

Look for Mothers’ Day’s favourites this weekend, for instance.

The catalogue comprises 250,000 titles and 10,000 hours of videos with content delivered to 600 web-based outlets.

Music is also licensed for background music in films, adverts, video games and so on.

Evidence of the recovery showed through in the latest results.

“Album and track downloading is giving way to the subscription-based and advert-funded method of consumer music buying,” stated Infante.

Revenues rose by 14% to £2.33mln in 2017, while underlying profit [EBITDA] jumped 121% to £536,000. 

Broker upgrade

Panmure Gordon upgraded its price target to 15p following the latest results, which confirmed the group and industry is back in recovery mode.

That in part reflected increased confidence that the music cycle has turned, while the presence of Grade and Dunleavy will allow it scale up the business.

The broker expects sales to rise to £ 2.8mln this year with profits of £600,000.

Remember, that is before voice-activated devices such as Amazon’s Echo/Alexa and Google Home reach tipping points in their usage.

At that point, Infante says even the value gap between how much the uploader (Yahoo for instance) makes and the artist that created the content might even start to be closed.

Toe in the tech water

Away from music streaming, One Media IP has also started to explore the tech space.

TCAT, a copyright and content search tool has picked up its first 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 is also moving into more customised content.

The group recently bought rights to the Men & Motors series, which it has repackaged as s clips programme, something that generates many more views than the original format says Infante.

Other clever things are also on the go that Infante won’t elaborate on just yet, though music publishing is an area that he does like and that too is enjoying a renaissance due to the streaming surge.

All told, it seems very much a case of watch this space over the next year or so or if you don’t have time maybe ask Alexa to do it for you.

View full OMIP profile View Profile

One Media IP Group Timeline

Related Articles

April 16 2018
Global pharmaceutical R&D is forecast to reach $182bn by 2022 having grown at near 4% annually since 2006
Lego ball
September 14 2018
The company's latest push is a joint venture agreement with US-based entertainment firm Three Six Zero, which has steered the careers of pop stars such as Calvin Harris
Media junkie
February 13 2018
In modern parlance, Ebiquity is making a pivot towards becoming the "world's leading tech-enabled marketing and media analytics consultancy"

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use