Music services provider reports first profit
UK-based private music services provider Omnifone has reported a 118% rise in its revenues for the year ended 30 April 2012 to £29.5m and recorded its first profit of about £3.8m since its launch nine years ago.
The company had attributed the rise in revenue to growing restriction on internet piracy in addition to rise in demand for cloud-based music services.
Omnifone CEO Jeff Hughes said the company has experienced fantastic momentum on all fronts over the past year and have achieved profitability as a result.
"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," Hughes said.
"Our sights are set on new market expansion, business development and market consolidation."
Omnifone is now planning to offer its services to smaller businesses, paving the path for latest music subscription products.
The firm’s Music Station platform manages licensing, digitising and copy-protecting songs for its clients, in addition offers tools which allow clients to offer their own music streaming software with their own trade name.
The MusicStation Platform provides access to about 22 million tracks, while powering digital music services in 28 countries.
Omnifone has launched three new global services, which include Sony Music Unlimited, rara.com and RIM’s BBM Music, which will be pre-installed in HP’s PCs.