Destiny Media Technologies Announces Strategy Update
VANCOUVER, Nov. 27, 2017 - Destiny Media Technologies (TSXV: DSY) (OTCQB: DSNY), the makers of Play MPE®, a cloud-based SaaS solution for promotional music marketing, and Clipstream®, the world's first script powered video platform, today announced a change to its strategy.
Effective immediately, Clipstream® business and technical development will be transitioned to maintenance and support only. At this time, the company believes Clipstream® requires a substantial investment to continue to develop as a technology and as a business. Consequently, the company is reviewing strategic alternatives to capture the value of Clipstream®, its surrounding intellectual property and business, for its shareholders.
The company will focus its resources on global expansion of Play MPE®, a business that currently generates 99% of company revenues. Continued growth of Play MPE® has been hindered since 2010 when the company began diverting significant development resources to a variety of technical projects independent of Play MPE®. The company believes focused investment of resources on its SaaS based business will lead to immediate gains in use and strategic advantages over competition for Play MPE®.
"We have seen renewed enthusiasm from our team and our customers. We are very encouraged by the recent improvements in the Play MPE® system and how those improvements are being received by our customers," said Fred Vandenberg, Chief Executive Officer for Destiny Media Technologies. "Focusing our resources and attention on our core business will yield benefits immediately to our profitability and longer term to our revenue growth. Play MPE® is well positioned to continue to grow at a critical time when the music industry globally is returning to growth."
PwC's 2017 Global Entertainment and Media Outlook predicts the global music industry will grow from $17.2 billion in 2016 to $22.6 billion in 2021 driven primarily by increases in digital subscription sales. This growth is driving increased investment in promotion and distribution workflows by global music labels as the role of radio and key influencers directly impacts revenue generation from these growing services.
About Destiny Media Technologies, Inc.
Destiny Media Technologies ("Destiny") provides software as service (SaaS) solutions to businesses in the music industry solving critical problems in distribution and promotion. The core service, Play MPE® (www.plaympe.com), provides promotional music marketing to engaged networks of decision makers in radio, film, TV, and beyond.
SOURCE Destiny Media Technologies, Inc.