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Perspectives on building technology businesses and AcceleratorIndia from Cartezia

Indian IMI Mobile acquires DX3 Digital Music Distributor

Wednesday, March 25, 2009

Mobile content distributor IMI Mobile, based in Hyderabad in India 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 and handled mobile download marketing for EMI's pop band Alphabeat, but now 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 is proving very difficult for pure digital music providers to make money in the space. Although DX3 has multiple content relationships and some online experience, it needs a distribution partner with significant resources. IMI has a strong technology platform, many cost-efficient data centers around the world, support infrastructure and a wider product range that will enable DX3 to go from being just a digital music provider to connect with social networking and mobile marketing tools.

DX3 has been renamed IMI Europe. It will retain and grow its staff in London and will also open a Zurich office to serve pan-European clients from mainland Europe. And more acquisitions are on the way. IMI sees Europe as the cutting edge of the market and is also likely to use DX3 for new product development.