Canadians love music, and the lean-back-listening-experience Stingray Digital Group (TSX:RAY.A) provides what they love the most. The customer patronage to a one-of-a-kind digital streaming service continues to grow. Stingray is hoping more investors would listen and find good value in the company’s gem of services.

Listen to the music

Numeris, Canada’s source for radio and TV audience data, had some great feedback for Stingray. Numeris conducted a survey from December 17-30, 2018. The purpose was to track the radio listening and TV viewing habits of Canadians. The Holiday 2018 Numeric PPM survey results are telling, and shareholders should be delighted.

Based on the results, 41.4%, or about 15 million, Canadians were tuned in to Stingray Music on TV during the period. That represents 40.2% of the country’s nearly 37.3 million population. Also, 41.6% of them are in the age bracket of 25-54.

Mathieu Péloquin, senior vice-president, marketing and communications of Stingray, expressed elation. “Our first Numeris results reflect the appreciation of Canadians for an expertly curated, lean-back listening experience that is like nothing else on the market,” he said.

Péloquin added, “These outstanding numbers confirm what we have known for years: Stingray Music is the preferred music source of Canadians from coast to coast. We are particularly pleased by our share of listeners ages 25-54. Our solid foothold in the market and ability to reach audiences of all ages guarantees our longevity.”

The expanse of Stingray’s reach is worldwide. This premium provider of curated direct-to-consumer and B2B services is present in 156 countries and has so far reached 400 million subscribers or users. A manpower complement of about 1,200 is serving the special market niche.

A surprising development

Prior to the market’s 2018 last-quarter downturn, the stock was trading slightly above $9 and settled at $6.75 to the end the year. The current price is $6.43, and there’s plenty of room to grow this year.

Stingray attempted in vain to acquire chief rival and American U.S. counterpart Music Choice. Had the unsolicited bid succeeded, it would have certainly accelerated growth. But the failed attempt turned out to be a blessing in disguise. Stingray snatched Altice USA, which is one of Music Choice’s prime clients.

Despite the global reach, having direct access to the U.S. market is Stingray’s long-standing dream. It has become a reality now that a contract with Altice USA has been forged. The New York-based broadband and video services company client operates cable systems in 21 states and to date has 4.9 million customers.

Competitive advantage

The signing with Altice USA is not only strategic but an elevation of Stingray’s standing in a key market. Altice clients can enjoy 50 Stingray music audio channels and music videos. The move could also be the beginning of a series of deals with some more big operators in the U.S.

According to Chief Executive Eric Boyko, the plan to take over Music Choice has just been placed in the back-burner. The company will carry on and play good music. Meanwhile, investors should see that Stingray’s music translate to consistent revenue.