Cloud-Based Digital Music Service Provider Omnifone Turns Profitable
LONDON - Omnifone, a provider of cloud-based digital music services, reported its first annual profit on Tuesday.
While big-name digital music brands, including Pandora, have generally written losses, the company reported operating cash flow of $6.1 million for the fiscal year ended April 30. Revenue rose 118 percent to $47.2 million.
"Profitability and the increase in revenue are a result of the successful launch of three global services in just 12 months, including Sony Music Unlimited, rara.com and [Blackberry maker] RIM’s BBM Music," the company said. "Omnifone continues to invest heavily in research and development to further enhance the MusicStation platform," its technology platform.
"We have experienced fantastic momentum on all fronts over the past year and have achieved profitability as a result," said Omnifone CEO Jeff Hughes. "The growth of smartphones, connected devices and the availability of high-speed connectivity has led to an increased demand for cloud-based music services, opening up a land grab opportunity for the digital music industry.”
The MusicStation Platform powers digital music services in 28 countries with a licensed catalogue of more than 22 million tracks. Omnifone recently acquired Swedish content management firm Global Mediabank.
“Our success is proof to the industry that the business-to-business model has the potential to be profitable," Hughes said. "Scale is important and having achieved profit at scale our aim is to focus on growth across all areas to take the business to the next level. Our sights are set on new market expansion, business development and market consolidation."