One Media IP Group PLC (LON:OMIP) said it has incorporated a new subsidiary, TCAT Limited, and appointed an experienced management team to enhance the use of its Technical Copyright Analysis Tool (TCAT).
TCAT is a software as a services (SaaS) platform developed by One Media to detect copyright infringement within legitimate digital music stores. AIM-listed One Media, which acquires, publishes and distributes digital music rights, said the creation of the subsidiary is part of TCAT’s next phase of development to become a “leading anti-piracy service for the music industry”.
One Media said TCAT currently provides a range of services to two major record labels and the world’s largest media distributor on a retained basis, while its services are also used by organisations that represent the interests of the recording industry worldwide.
To enhance and scale TCAT for wider use across the industry and other markets, One Media said the management team appointed to run the subsidiary include Ed Vernon, a strategic advisor to BT Ireland, as TCAT’s non-executive chairman, as well as One Media’s own chief executive Michael Infante and chief operating officer Alice Dyson Jones.
One Media also said that the subsidiary management team now consisted of a number of “Big Data technology industry professionals” and will be expanded in due course to provide expertise to grow the platform and develop new initiatives and tools in music anti-piracy, digital music fingerprinting and music data analysis.
“After four years of developing and growing TCAT’s capabilities in-house, the board has identified the need for TCAT to operate as an independent entity within the group in order to realise its full potential. With a number of major record labels already subscribing to TCAT’s services on a retained basis, we are confident that, with the provision of additional resource and technical expertise to expand the software’s capabilities and usages, there is significant opportunity to gain new traction within the industry”, CEO Infante said in a statement.
“Our intention is for TCAT to become a mobile anti-piracy and audit tool for composers and artists as we build the portal to allow for future application access. Under the direction of a highly experienced and motivated management team, the Board has every confidence in TCAT’s growth trajectory as it enters the next phase of its development. We look forward to providing further updates in due course”, he added.
Trading in line with expectations
In a separate announcement covering trading for the year to October 31, 2020, One Media said that it is “countering the ongoing wider macro challenges” and is continuing to trade in line with market expectations.
The company expects to report revenues for the year of around £4mln and earnings (EBITDA) of £1.4mln, an increase of 14% and 30% respectively year-on-year.
One Media added that it maintains a “healthy cash position” of £6.7mln at the end of October, adding that following a fundraising in August it “continues to evaluate acquisition opportunities” to be executed through its Harmony IP asset release programme and full catalogue acquisitions.
“Based on the group’s strong performance to date and the continued growth in music streaming, the board is confident in the outlook for the business as we remain focused on exploring further acquisition opportunities”, Infante said.
“We are also encouraged to observe that the sector continues to attract significant investment from outside of the industry, which we believe will help to build further interest in our business and strategy. We look forward to keeping the market updated as we continue to deliver on our growth strategy”, the CEO added.