DESTINY MEDIA TECHNOLOGIES INC 8-K

What Happened
DESTINY MEDIA TECHNOLOGIES, Inc. (DSNY) filed an 8-K (Item 8.01) to announce it has extended its Online Content Distribution Services Agreement with Universal Music Group Recording Services, Inc. The contract extension runs through December 31, 2028, and reflects Universal Music’s full transition to the Company’s Play MPE® platform.

Key Details

• Agreement term extended three years to Dec 31, 2028.
• Service fees set at USD $1.6 million for calendar year 2026, with a 2% annual increase for the remainder of the term.
• Fee reduction tied to lower engineering development needs after Universal’s transition to Play MPE®; separate fees apply if additional development services are required.
• Extension excludes distributions to current or prospective Play MPE® clients not covered under the Agreement; Universal entities have used Play MPE® services since 2005 and under a global agreement since 2009.

Why It Matters
The extension secures a multi-year commercial relationship with a major music company and establishes a predictable fee schedule (including a modest inflation adjustment). For investors, this provides revenue visibility for the contract period and reflects reduced ongoing development costs after Universal’s platform transition — potentially supporting steadier service margins tied to the agreement.