Digital music services company 7digital has accepted a settlement from the Media-Saturn-Holding-owned Juke Entertainment music service to end their partnership.
The settlement, in the form of an immediate payment by Juke of €4 million ($4.5m) sees 7digital released from all outstanding contracts and commitments relating to Juke.
London-based 7digital acquired the MediaMarktSaturn subsidiary 24-7 in 2017 and began supplying Juke with its services as a result of that deal.
According to the statement announcing the settlement on Friday (March 1), 7digital has also agreed to ‘use its best endeavours to ensure an orderly sale of MediaMarktSaturn’s shareholding in 7digital’.
7digital will update the market on the effect of this settlement on the outturn for financial year 2018 in the coming weeks, following consultation with auditors.
“Whilst we would have preferred not to have been in this position, we are very satisfied with the settlement which represents the full value of all future financial commitments by Juke.”
Simon Cole, 7Digital
Simon Cole, CEO, said: “I am extremely pleased to put this period of uncertainty behind us. Whilst we would have preferred not to have been in this position, we are very satisfied with the settlement which represents the full value of all future financial commitments by Juke.
“The immediate injection of cash will allow us to restructure our overhead base and reposition the company for continued growth. We have had a good start elsewhere to the current financial year and will update shortly on our recent contract wins.”Music Business Worldwide