Answer to Mulgrew12 part111 Dec 2020 04:06
Mulgrew12 asks why we are positive about MVR. Here is my take on it.
First of all, I agree is that the financials are looking bad now. Basically, a company has only demonstrated a concept but not a product by now. However, I believe (and this is just my opinion) that MVR's concerts are a cool product. I should admit that its product is not for all -- MVR never said that they want to directly compete with Spotify. I think their target customers are young adults (16 - 30), probably students who have time to follow celebrities and watch videos with them but limited in finances (can't afford to visit every concert). Based on my life experience, I believe that there will be a demand for MVR's concerts.
You may ask why MVR isn't releasing the product now. My answer is that because the product is complicated: it requires a lot of marketing efforts and good timing. A good example showing how important is to present the product is a recent fail of Quibi which was released in April -- the hassle of pandemic just deflected people's attention from it. Many people here said that MVR failed because they were not able to sell their VR during the pandemic as the pandemic is a great time for VR. While the latter is true, I think MVR did it right that didn't go all-in this year. Their model can't afford them to organize concerts themselves for broadcasting: their idea was to broadcast actual concerts that are already paid for by attendees. In this scenario, MVR benefits from already running concerts giving additional revenue to performers. The pandemic canceled the concerts. From this perspective, you can think that MVR was severy hit by the pandemic.
Secondly, I really like the Napster move: Napster solves the problem of getting the reach needed to promote the product. For example, it gives MVR access to the data on what their target customer listening to now, and so on. Obviously, there is a price for such benefit: now we need an expensive merge, the merge increases risks as more parties will be involved, and so on.
Another reason why I like MVR is its great position in terms of technology. Firstly, I think that the widespread 5G will happen in the next 2 years. The providers will start aggressively selling it soon. VR videos is a great promoting product to persuade people that they need a 5G tariff now. Secondly, there are VR headsets (Facebook, Apple) but they are far away and I am less excited: there is no clear timeline on when we would get a decent cheap headset with good ergonomics. I expect the headset technology to advance in the next few years with varifocal lenses and ML headset software to be the most influential improvements.
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