in progress supplemental disclosures and should not be considered in isolation of or as a substitute of, or superior to the financial information prepared in accordance with GAAP, and should be read in conjunction with the company's financial statements filed with the SEC and SEDAR. The non-GAAP financial measures used in the company's presentation may differ from similarly titled measures presented by other companies. A reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures can be found in the earnings press release. Also, I'd like to mention that following the presentation, there will be a question and answer session, during which you can submit questions by selecting the Raise Hand icon at the bottom of your screen. Your question will be pulled in the order that they are received, and at which point you'll be prompted to unmute your microphone before speaking.
With that, I'd like to turn the call over to your host, Fred Vandenberg, Chief Executive Officer.
Thanks, Rebecca. Today we have myself, Fred Vandenberg. I'm the CEO here, and Allan Benedict, who leads our business development and marketing teams. I will take you briefly through some financial results, very briefly, and then I'll turn it over to Allan, to talk about business development, and then I'll come back on and talk about where we're going and what we're trying to do. Before I get into the financial results, I think it's probably a little bit. It's worth a little bit of time to talk about what we're trying to do. Our overarching goal is to grow revenue.
That's probably an obvious statement, but, you know, we're still a small company, and I think in the context, we have a lot of really great upside potential. I'm hoping that I can communicate that on this call and why we are going to be successful. You know, as it stands, we have a lot of really great things that are working for us. We're the backbone of distribution for the largest record label in the world, globally. We have a very strong distribution platform. Although we're still a small company, we believe we have the largest platform of its kind in the world. We're the largest revenue generator for this type of business.
As a result, I think we've built a really good platform that has capabilities that others just don't. That's why, you know, we form the backbone for the world's largest record label. Also, there's some significant barriers to entry for that core business that we have, Play MPE . We want to grow, and so when it comes to product development, you know, which is the bulk of our spending, we want to do a couple of different things. We want to grow that core Play MPE platform use, and we do that through a couple of different things. We wanna add features and things that are subscribable so that it is a true SaaS-based platform.
Also, to help facilitate sales, whether it's in existing markets or to expand globally. The second major thing is to add entirely new businesses. Now, our first port of call there is to do things that complement Play MPE , that we can build on that, you know, has some synergies. I'll get into more specifics when we talk about looking forward. It's a good time to talk about that here, because of the way our financial reports are laid out. As far as revenue goes, Q3 revenue grew by 6.9%, and this was really on the strength of an almost 14% growth in independent record labels sales.
Recall that there's two major segments here: the major labels, which is the, you know, the big labels like Universal, Warner and Sony, and then basically everybody else. On the expense side, this is where I think providing this little background provides a little bit more context for our PNL. You'll see, if you're looking at the 10-Q, you'll see that we've capitalized a lot of costs. This might reduce the ease with which you can see how much cash we're using, and we prepared this table to sort of show where the cash is being generated and used. Now, looking at this table, if you look at Q3 to date, year to date, we've generated $508,000 in cash from operations. We've.
For an average of about $170, just under $170 per quarter. We've capitalized $690, or an average of $230K. You can see that we are using a bit more cash in developing in product development than we are generating. You'll see that both of those numbers, you know, compared to the two years prior to 2023, both of those numbers are going up. You know, cash generated from operations, now that's an analog for EBITDA. Over time, they should be, you know, they should go to the same number. What you see here is.
that we're essentially selling more and doing it more efficiently on our core business, but we're also spending more on items that are capitalized. We do that because we see an opportunity, and I'll get into that a little bit later. The other here is just minor things like FX and computers, and also included is the share buyback. Essentially, you know, when Allan talks about biz dev, he's selling the existing platform. His efforts are primarily on working with the platform that we have. To paraphrase Donald Rumsfeld, Allan's going to war with the platform that he has.
When he talks about it, keep in mind that, it's with the current platform, and we're doing a lot of things that we think that will, make his job easier in the, in the short term. With that, I'll turn it over to Allan.
Thank you, Fred. Good afternoon, everyone. I wanted to start by addressing our independent revenue again. I know last quarter we spoke about independent revenue rebounding and that we expected that trend to continue. Now for the second consecutive quarter, the revenue we've generated from those independent clients has grown, and as Fred mentioned, was up roughly 14% in the Q3 . In the past, I've talked about independents trying to navigate the music industry coming out of COVID, while touring has started back up, but it was kind of overly competitive, where the smaller artists were essentially blocked out from a lot of tour routings. Some of the public funding that they had access to during the pandemic was starting to dry up.
This trend of indies finding their footing, post-pandemic is even more pronounced looking within the quarter. For instance, in May, specifically, independent revenue grew by nearly 50% over the previous year. That growth was fueled mostly by clients in the US and Australia. Australia's indie growth is even more exciting due to the recent announcement that the government, will be putting together a new arts funding program there that will allocate quite a bit more grant money to musicians and artists, especially those looking to tour outside of Australia. We're still in the early stages of seeing what that process will be and kind of how those funds will come into play. We believe this trend within Australia will continue to grow.
Not only are returning independent clients sending to a larger group of recipients, many are utilizing our new international bundles, which I'll elaborate on more in just a moment. We're seeing a steady increase in new independent clients that are finding Play MPE for the first time as well. Over the past few months, we've put a big effort behind optimizing our digital marketing strategies and some of the SEO within our website and search ads and things like that. We've seen a steady increase in lead generation over previous years. Overall, this was the third highest quarter for independent revenue in the history of Play MPE. Speaking of those international distributions, last quarter, we launched We refer to them as international bundles and made them available to clients.
As a quick refresher, we wanted to give clients an easier way to distribute their releases globally and package together different lists to make that happen. For instance, if you want to send your country song around the world, you can select a bundle that covers every country recipient we have within the platform. Right now, we have international bundles available for 10 genres, and we're hoping to expand this moving forward. Ideally, clients will eventually be able to target recipients globally based on the genre of music, the language that they speak, the size of the outlet, things like that, kind of more customization within the packages and within the platform.
These international lists were pretty quickly a hit with mainly our independent clients, and we've only heard positive feedback from them now that they've used them for a few months. The Q3 itself saw more than double the number of releases being delivered to these bundles. Our latest international offering, we created an international non-commercial bundle. It's already our second most popular of those bundles. The reception to that one specifically has been really overwhelmingly positive from the indies who are looking to get as much exposure as they can for a still a reasonable price. As mentioned, eventually, we want these international bundles to one day be language specific as well. An obvious language there would be to create a Spanish-speaking list.
I've talked in the past about us focusing on Mexico, and we remain focused there on growing our recipient base and roster of clients, kind of like a home base, if you will, for the Latin market. Slowly but surely, we're seeing more progress here. A major obstacle that we ran into was the simple fact that a solution like Play MPE hasn't really existed in Mexico for radio stations, and it took longer than anticipated to educate radio and really give them an understanding of what we provide. As archaic as it might sound, the simple fact that we're not coming to them to try to bill them for something, that they're more the product itself.
Through a series of sit-downs, we were able to onboard all of the major radio conglomerates in Mexico, and their users are slowly beginning to adopt Play MPE and put it in their workflow more and more. Growing the list does take time, but we're seeing a consistent increase in active users, and they're remaining active in the system, which is a really key thing. Especially when we start growing out territories like this, sometimes we'll have a bunch of users jump on the platform all at once, but if there's not content there to keep them engaged, they'll kind of quickly go dormant, and then it's sometimes difficult to get them to re-engage back with the platform. Mexico, it seems like recipients are sticking around rather consistently. We're also breaking through with larger clients.
I know we've spoken in the past of our pilot agreement with JN Music Group. This quarter, after they found success over the course of the last year with Play MPE , they renewed that agreement for a higher fee. In addition, in addition to JN and our independent clients, this quarter saw the first Latin releases from some global distributors such as The Orchard, which is a Sony subsidiary, Symphonic Distribution, and one of the largest Mexican management firms, a company called Two Streams. Speaking of The Orchard, seeing The Orchard pick up use in Mexico is really encouraging, not just for that territory, but Sony as a whole. We've talked a lot in the past about Warner Music's increasing Play MPE usage, but Sony has always proved more difficult.
They have an internal system that a lot of their teams utilize, and breaking through that wall has been a challenge. But along with The Orchard growing, we have seen a consistent increase from RCA Records, pretty much month-to-month. They've grown over the last five or six months, getting back to the fall. We're hoping these gains continue and obviously lead to opportunities with other Sony-affiliated labels, that maybe there is a need there that we can, we can fill that we just haven't identified in the past. I know Fred spoke earlier about improvements we made to the platform and how we go about that. Before I pass the mic over to him, I just wanted to touch on a couple practical implications for those improvements.
In the past, we've spoken about Quickshare and how its functionality essentially allows users to quickly send an individual link to someone, without going through the whole process of setting up a release within Play MPE . On the surface, this may not seem like a major advancement or a huge new feature, but it's already become a large part of the workflow in both Warner New Zealand and Warner Nordic offices. With Quickshare now, for the first time, they're able to utilize Play MPE to share early listens with a very small, very select group of their contacts, without having to send a link through another platform. They're both spending more time within Caster and treating it more like a home or a one-stop shop for some of their promotion efforts.
The same logic kind of applies for the independent side as well. Recently, we improved the presentation of our package lists to make it easier for users to see which lists are available and learn a little more about them. While this update was very recent, so we have limited data, only a month or so of data, we've already seen a slight increase in the average number of lists selected per release. That's just from allowing users to browse what you could essentially call a catalog of lists right within the platform, without having to go search for a PDF or ask more questions about who's on a list or anything like that. It's these small improvements that are really kind of pushing it over the edge.
While they may seem minor at first, they end up impacting our clients and improving their experience quite a bit. With that, I'll pass it back over to Fred, who's going to talk more about our investments in product and a bit more looking forward.
Thanks, Allan. Okay. I hinted at it earlier. Our investments into product really come into these, you know, three sort of groups: sales catalyst, things that are going to help, grow Play MPE revenue, the core, current, vision of the product. The second one is that, saleable features like Quicks hare right now is a free, freemium product. We think that, with added features within Quicks hare, we can, you know, start to charge a monthly fee. The last one, the one that probably has got me a lot, quite a bit excited, today is new business lines. As far as growth in our current platform, I'll start with there.
Just over a year ago, we finished a years-long significant investment of time into Universal's global distribution requirements. It's never finished, you know, these things are ongoing. You know, you develop those things, you maintain them. Following this, we were able to start working on things that are we think are going to provide a catalyst for sales. These are the things that we've been waiting for for years to be able to do. We made some progress in 2022, you know, throughout the latter half of the year, calendar year. We came ultimately to the decision that product development needs to move faster, and we needed to adjust some things.
There was a little bit of analysis, you know, paralysis by analysis. We need more action to accomplish more. We made a change in that group. You know, I'm not the most effusive person, but this is the thing that probably has gotten me the most excited. I really have seen in a short period of time, you know, a palpable change in what we're working on, how quickly we deliver it. But simply put, you know. It's not rocket science. You know, to grow Play MPE revenue, you want more releases to more people and provide greater value while you're doing that. You know, what are we working on to do that?
Allan talked about our growing our international list offering, so that's a, you know, one of the products. You have a greater amount of destinations, or at least the destination is a broader number of people. We don't really have competitors that offer that kind of international distribution, or at least the, you know, the destinations. We have competitors in different sections, but nobody does what we do in terms of the international flow. We're offering more in terms of that offering. We've implemented a couple of technical changes that they're trade secrets, so I don't want to get into too much how we do it, but there's technical changes that help us acquire more recipients and put them on our lists. Those were implemented during the quarter.
One of the major areas of focus that we have over the, you know, the immediate future, currently in the immediate future, is to be truly self-serve for our customers. I think that, you know, you make the product easier to sell, you make that product easier to buy more, you will sell more. One of the major areas of focus is to make the platform fully self-serve. We do a lot of full service clients, so it's our operations team that prepares the release, bills the customer, collects the money. To automate that, we are we're doing a full checkout process, so you can Sign up by yourself, you can select lists by yourself, you can pay within the platform.
Those are sort of the major components of a fully self-serve platform. I think when we, when we finish this, it'll be a game changer. It'll really help us a lot, I think. Impossible to know exactly what the impact will be, but we've been working on that. We essentially built out the list selection part of that. We released that during the quarter. That is, The customers that are self-serve, we have two different types of customers, self-serve and full-serve, and they both see that we delivered it in two components. The first was full-serve. That was done during the quarter. The self-serve version was released just in early June.
Essentially, those, that component of the checkout is, has marketing information with the list. It allows you to save your favorites. It has. It's just easier to select. These things are going to toggle the current sales, and then ultimately, be part of the greater impact of truly self-serve. That's. Those are the kinds of things we're working on. We're also working on something that will help our clients market themselves, and then in doing so, they market Play MPE, and then we're facilitating that change, and that's going to happen. It's working, being worked on now.
It's all these different things that actually we, I think, will truly make a difference to what the core of Play MPE will be, and I'm just really excited about the cadence there of what we're delivering. Well, the last thing I'll talk about here is the new product development. One of the things, one of the sort of the natural questions of a Play MPE customer is, we deliver through Play MPE, did it get airplay? You know, where, when, how often? We've known about this market opportunity for a long time. It's an underserved market with customers waiting for a solution.
On a macro level, one of the things that I should couch the market changes here is, more and more broadcasts are being done digitally, and that's not a... You know, it didn't happen 10 years ago, it's still happening now. When you have digital broadcasts, they're becoming more popular, and people are listening to those digital broadcasts as opposed to, say, radio broadcasts. Traditionally, if you wanted to know if your song got any airplay, you would really either have to wait for a royalty check or subscribe to a service that, like one that would power the, you know, the Billboard Hot 100 charts. Those kinds of services are incredibly expensive and capital intensive.
They have a finite number of stations that they monitor. They're called monitored stations. One of the things we've been working on is with a digital broadcast, you can have machines listening. In 2021, we started an R&D project that began to show some positive results. There's a lot that goes into it, and I won't go too much into it. How the, how it all works. Essentially, you have a computer listening to the broadcast and then reporting on the results. Just quite a lot goes into that.
We saw some positive signs about how it works, and then just slightly over one year ago, we hired an entire pod to build this out, and that's why you'll see quite an increase in investment in product development. We soft launched that in May. Had some technical things we needed to address, and we expect to beta launch this in the current quarter, in this Q4. I know a lot of investors are anxious to hear what we have to say about this. I don't want to get too out in front of my skis here. I really find this extremely exciting. Our, you know, our first foray here, our beta product, will only be available in Canada.
We don't know how quickly the customers will adopt. We think we have all the, you know, the technical hurdles addressed, but you never know. Saying that is just sort of asking for trouble, but we don't know pricing. I really don't wanna manage expectations here. It's a product that meets a need that isn't being met. We have a captured audience of customers with Play MPE use, potential customers. The addressable market is large. It's significantly larger than Play MPE, we think. Again, we don't know the pricing, we have to manage that. You one sort of additional thing that I kind of like, well, I like, is that it in contrast to Play MPE, it doesn't have the same kind of lead time in terms of sales.
You know, the thing works already. It, you know. If you want to see if your song is being played, you subscribe. You know, with Play MPE, Allan talked about it, touched on it with Mexico, where, you know, you got to get customers, the recipients, to access Play MPE before you get the content. You need people accessing Play MPE before you can get the content. There's sort of that chicken and egg thing with Play MPE, which takes a lot of time and effort. You know, eventually you'll get this captured network of use, and that's, you know, that's why there's a barrier to entry to competing with the core Play MPE, but it's also why Play MPE can be slow to grow, whereas this monitoring product doesn't have that kind of thing.
Anyway, I just wanted to manage the expectations, but you'll see a beta launch later this quarter. With that, I will turn it over to questions.
Great. Thank you, Fred and Allan. Yes, we'll now begin our question and answer session. If you do have a question, please raise your hand by clicking the Raise Hand button at the bottom of your screen, and your question will then be answered or pulled, sorry, in the order that they've been received. If you do raise your hand, please ensure that you have access to a microphone, and if you wish to retract your question, you can just hit that same Raise Hand button again to lower your hand. Your camera will remain off, but once prompted, please unmute your microphone, and you can ask your question. If anybody does have any, please hit that Raise Hand button at the bottom. We don't have any raised hands, but there is one question in the Q&A chat.
The question, I can read it out, Fred, is: What's the plan in terms of R&D for fiscal year 24? Do we plan on increasing/decreasing?
Oh, that's a good question. Right now, we have the capacity to work on those things that I think are catalysts to Play MPE. We're delivering those. We expect to make really good progress with that during the year. I guess it's probably good to say that the capitalized costs that we have primarily relate to the monitoring new product that we're working on, as opposed to stuff that is catalyst for Play MPE. I think, for fiscal 2024, we don't plan any major changes. We think that the product evolution for a new business will take some time to build it out to become a, you know, the full potential. Any kind of costs there will continue.
Yeah, I mean, providing that we see some signs of success, but I believe that we'll see that.
Great. Thank you. We do have one raised hand. Joe Raymond, if you're ready, you can unmute your microphone.
Fred, can you hear me?
Yeah. Yeah, we can hear you. I can hear you anyway.
All right, it's nice to see the independent revenue grow. I was just curious, what happened with the majors or what the rest of the business did and why?
Well, major label revenue is, was flat if, for the quarter. Allan, do you want to touch on that a little bit?
Sure. Yeah, absolutely. Yeah, as I, as I mentioned previously, there's always been a challenge within Sony, since they do have an internal product that most of the departments are using. Without them growing their usage quickly, at Warner, almost nearly all, give or take, a couple territories here or there, of their offices are using Play MPE, whether it be on a firm agreement or they're just consistently using. As we talk to more of those major clients, there's really only three, there's Warner, Sony, and Universal. A lot of it more has to do with their release flow throughout the year.
It seems that major label strategies are shifting a bit, where they're doing fewer large-scale, established, put a bunch of budget behind a campaign, and they're focusing a little more on kind of testing out some social media hacks, something that's bubbling on TikTok, something that's bubbling back in the catalog. We're seeing a little bit of an adjustment period, but we're hoping with things like The Orchard expanding into new territories and RCA growing their use that we'll see some of that rebound as we get later towards the year, once we're out of kind of the summer touring season.
Gotcha. Thank you. I also saw that it looks like a competitor is going out of business in the next month. I was just curious, Fred, kind of, what's your view on that, and what does it mean for Play MPE?
Well, that was news to us last week. That's the All Access. All Access is a competitor in the US, and they announced that they're shutting down last week. They have some penetration in rock and alternative. Certainly that's something that Play MPE could pick up. To maintain a platform like ours, you need, especially to maintain one, to maintain one as good as Play MPE, it takes a certain amount of investment. You know, updating it for current user interfaces, expanding what you do, even just the bandwidth and infrastructure, servers and stuff. There's a certain amount of costs to doing that.
I think, I don't know what to make of what they're doing just yet, but I can't see with their penetration, that they could actually really maintain that business profitably. At least, it didn't seem like it. Their business was, you know, different, but a complementary part of their business was the digital delivery that I think we can, I hope we can assume. Maybe Allan will maybe have some comments on that.
One thing that Fred just mentioned, that I really want to stress, is that we did just find out pretty much end of the day Friday, along with, from what we can tell, most of the music industry. We're still getting a total handle on kind of what it'll look like and what the timeline will be and what will happen. As Fred mentioned, they definitely have penetration within the alternative space and the rock space. Even with some of our consistent major label clients, like their rock or alternative division, have still been steering their sense through All Access.
The hope is that with them closing up shop, I believe their last day it'll be August 15th, that business, not only from some labels who may not have used Play MPE in the past, but also other departments within current clients, that they will bring those releases over our way. We're hoping for that, and we're working on making that happen.
Gotcha. Thank you. Then lastly, what's the outlook on the share repurchases? I noticed that you guys only bought back a very small amount of shares this quarter. What's the outlook on that?
Yeah, we just, we got it approved, I think it was in May, early May. You know, the just mechanics of getting it set up, it took a little bit of time. There's not a lot of run rate with the buyback. You know, it can be a challenge when there's low volume to buy back. You know, we have a maximum that we can do of 5% over the next year, until next May. I'm hopeful that we can do that at a nice price. You know, if the price rises a lot, we'll back off.
Okay. Thank you. Thank you, Fred and Allan. That's all I have. Thanks.
Great. Thank you, Joe. There's no other raised hands, but we do have a couple more questions in the Q&A box, if you guys want to touch on them so I can read out the first one. Are we going to allocate sales and marketing resources to the monitoring service?
We already have. We, Yes, is the short answer. We're figuring out... I mean, that's what we're going to be doing over the next little while, is testing different things out and... We have the staffing in place to do that with a focus on doing that.
Great. The next question: Can you elaborate further on the changes in revenue, for example, up, flat, down from Universal, and which portions of their activity are going up, down, et cetera?
Sorry, Rebecca, I didn't hear that whole question. Could you just touch on it again?
Yeah, no problem. Can you elaborate further on the changes in revenue from Universal and which portions of their activity are going up, down, flat, et cetera?
Okay. We renewed our agreement with Universal last year in starting in April, I think it was, and we got a 10% bump in revenue from them. Unfortunately, the EUR then subsequently, you know, tanked, so you really don't see that in the revenue over, certainly over the last year. The, you know, the EUR's coming back up. Universal's use, generally, is. This gets into where I talk about our platform and how good it is. You can measure that using a gigantic amount of metrics, you know, distribution sends and all these things, but they do a lot of different things within the platform. They have a lot of a very powerful platform to work with.
Their use is growing, sort of holistically. We think we're gonna grow their use in Mexico and other Latin countries. Yeah, I don't know. Allan, do you have anything to add to that?
No, I think that's a great point you brought up of UMG México coming on board. Universal's set up in a rather unique way compared to a lot of clients, where they do have kind of internal centralized hubs that they handle a lot of their releases. With that, like, they obviously only have the capacity to send out so many at a time. The more and more Universal territory offices that are onboarded directly, will grow that usage. Mexico will be a big stepping stone. I know Universal Spain has also kind of come around with more interest as we're going up the Latin list. It's really about getting those territories involved and keeping that usage growing.
Good. Thanks, guys. got another one. It seems like cost of revenue dropped quite a bit this quarter. Is it a new normal or an odd quarter?
Cost of revenue dropped this quarter? I thought it was up a little bit. I probably have to look at that. That's not a significant portion of, you know, of our costs, and it's, the things that go in there are just really staffing costs with our full distribution clients. Some, some fees associated with, you know, the transactions. I suspect those things fluctuate, just depending on minor things that impact the quarter. I don't, I don't see that those, that margin will change for the better or for the worse, significantly.
There is a follow-up question about buybacks, which says: I know that there are some restrictions on what you can do, like when purchases can be done. Would you please summarize the restrictions? I'm guessing that purchasing at the bid versus ask and good to cancel order might be issues.
Well, generally, there's, you don't do buybacks during the H1 hour of the day or the last half hour of the day. There's a restriction of 5% for the full year. There's a restriction of 2% in any one month. There's a restriction in the sense that you cannot push the stock price up. You know, if the ask is above the last trading price, you can't buy that. That's the general restrictions.
Thank you. We've got a question from Jim Bott, which says: How many paying customers do you have? How can we get the other majors to use/pay for our product?
How many paying customers do we have? Thousands. Yours is a platform... When you talk about churn within the platform, it's a very difficult thing to do for us. Like, some SaaS-based companies have just a regular fee every month. We're a pay-per-use, so if you have, if you have a release to send out, you use us, and if you don't, you don't. Figuring out how many customers are actively using us at any one point in time is a little bit challenging, but we have thousands of record labels that use and come back to Play MPE . As far as getting other majors to use us, well, they do. Warner would be our second largest client, but like Allan said, as Allan said, Universal uses us a little bit differently.
They have one contract that covers the globe, and they have a distribution center in London and a distribution center in L.A., that then in turn, share these releases with different territories around the world. This is one of the things where I think Universal really approaches this, is in a really smart way. Play MPE provides them with a bunch of tools that allow them to do this, and, it saves a gigantic amount of time in repurposing the releases, so that, so they can put restrictions on what the releases have. When they, when they are distributed, they put in, metadata so that, you know, your ISRC codes, the, the codes that essentially make sure you get your royalties, they're correct. You know, once they're in, then they're disseminated around the world.
There's efficiencies of not having to upload it. These are all... Like, I'm just talking very briefly about an incredibly detailed platform that would be, you know, provides them with really good competitive advantages around the world. Now, a company like Sony or Warner or any actually major independent label that has use around the world could benefit from these kinds of things. They're just generally not set up to do that, and I think hopefully we can grow that use by marketing those competitive advantages that Universal currently enjoys by using Play MPE. This is one of those things where, you know, you talk about Play MPE being the best platform. That's Nobody has these capabilities.
You know, you would have to ever get a global distribution agreement with Universal, you would have to build those things out, you know, that would cost a lot of money. You know, Warner would be our second largest client if you were to collect all their use around the world. They use us in New Zealand and in South Africa, in, you know, Europe, the United States. I'm sure I'm missing some places. You know, they don't use the, you know, the parts of the platform, at least not that I'm aware of, that really would provide them with competitive advantages. There's other clients that maybe we could sell. Sorry, I was rambling there. Maybe that answers the question.
Thank you, Fred. The last question in our Q&A box today, if there are any other questions, just hit that raise hand option at the bottom, and we can get to them after this one. The last question is: Have you made significant progress in penetrating the U.K. and Germany markets?
We've made some progress with U.K. I think the U.K. distributions tend to be from the U.K. to outside the U.K. Again, you know, Universal uses us everywhere, so it's a little bit hard to say that we don't have penetration in the U.K. It's getting the other majors and a lot of the big like the indie scene in the U.K. is huge, and it's untapped for us, largely. As far as Germany goes, we're again, with Universal, we're pretty big in the media distribution in Germany. When it comes to things like radio, there's an entrenched competitor in Germany that would have the market.
You know, it's not as good a platform again. You have those same questions about, Well, if your platform is better, why can't you get the market? Well, you have that network effect where, you know, radio is using it and so are the majors. To displace that takes some time, and we just haven't put the efforts into, to doing that yet. We are doing that in Canada. It's taking some time, but we've, you know, we've shown a lot of success there.
Great. Thank you. That seems to be the last question for today.
Okay. Thanks, everyone. Hopefully, that was informative.