Hyderabad, India-based mobile content distributor IMI Mobile is buying digital music distributor DX3 of London as a beachhead to push in to the European and non-mobile markets. The UK company distributes music to white-label platforms like that of UK broadcaster ITV (LSE: ITV) and handled mobile download marketing for EMI’s pop band Alphabeat, but wants to branch out in to other content areas. IMI’s delivery platform distributes to a range of tier-one networks, but is still limited to just mobile.
“It’s very difficult for pure digital music providers to make money in the space,” DX3 CEO Anu Shah told. “DX3 has a lot of content relationships and online experience as well, we have been dual-play for many years now. As for us, IMI has a very strong technology platform, many cost-efficient data centers around the world, support and the product range that will enable DX3 to go from being just a digital music provider to connect with social network tools, mobile marketing tools, UGC tools…”
DX3 will be renamed “IMI” by January, will retain and grow its 15 staff in London and will also open a Zurich office to serve pan-European clients from mainland Europe, Shah said. And more acquisitions are on the way: “It’s not the end of IMI Europe’s aggressive expansion plans – we are actively looking at other organic and inorganic acquisitions in the next six months.
Shah said Europe is the “cutting edge of the market” and, accordingly, IMI will use DX3 for some product development. Migration of DX3’s technical services to IMI is underway, the new IMI Europe will be unveiling new services in Q1 and Q2 next year and it’s also hoping to power music services for ISPs Shah said it is talking with.