The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Albert - I don't think we will ever know the details of the debt schedule, what I am sure of is that Melody would have talked to the creditors to see what could be done, and creditors, as ever, would be very nice, listen attentively, then extract their pound of flesh. Not speaking from any kind of experience here you understand !!!
I would suggest that the creditors have been consulted and an "agreement", or re-scheduling of the debt has been reached, much like a CVA, otherwise why would you say it was "manageable" when the business that incurred the debt clearly wasn't able to manage it.
Selling out to Melody and re-scheduling the debt was maybe the only way for Rhapsody/Napster to survive.
The thing that is surprising is that Napsster add 24,000 tracks per month to their library
Where do all these 'new' tracks come from ?
Don't forget that, not so long ago, the BoD convinced John Gore that the Market Cap was worth £220
Add in Napster and you would have to think that the BoD would now consider the valuation to be north of £300M
In 2019, music streaming service Napster generated 106.3 million U.S. dollars in revenue. Media company Real Networks, which holds an 84 percent stake in Napster (formerly known as Rhapsody), also noted that Napster's annual operating expenses amounted to 25.8 million U.S. dollars in 2019, and 26.1 million dollars worth of Napster's annual revenue for that year was generated in the final quarter.
https://www.statista.com/statistics/1100594/napster-revenue-worldwide/#:~:text=Napster's%20global%20revenue%202011%2D2019&text=In%202019%2C%20music%20streaming%20service,million%20U.S.%20dollars%20in%20revenue.
Maybe Telefonica, but why not Verizon
This is all about the USA market
Some stats on Spotify and its user base
https://kommandotech.com/statistics/spotify-user-statistics/
ORLM - Who do think are the target demographic for subscription based music services with occasional pay per view live events ?
Rumboy - I saw the same "Albatross" comments on those boards, but I also saw many more who thought Napster was their cash cow.
Something to think about.
If MVR had been partnered with Facebook and distributed their video streams through Oculus Venues then Facebook would take 50% of the revenue.
For several years this was the expectation that this is what the business would be, and I never saw a post that was unhappy with the prospect.
Now the business owns its own streaming capability, is going to have the best part of 3 million people to throw it at.
Many of those 3 million people will pay, or continue to pay $6 to $7 monthly, plus one off payments for per view events
There will be no 50% payment to Facebook
Is this not a good situation
Is this not worth more than the £70M market cap at suspension
KoK
MVR have bought themselves direct access to 2.5 million Napster subscribers
If you add on whatever subscriber MVR have accrued for themselves then is it unreasonable to suggest that with a little push that they could easily be up at 3M subscribers by this time next year
What is the value of a music streaming service with 3 million subscribers ?
A good question, but you also have to;
Add on the VR angle and its attendant advertising
Add on the live shows angle and their advertising
Is it too unrealistic to expect nett returns after licensing fees of $50M p.a. going into the combined company's coffers ?
Obviously they would spend it on growth, so no dividend, but if they get there, it does make the worries about the $44M debt seem inconsequential.
No market cap information that I can find, but there is this;
In the first quarter of 2020, music streaming service Napster generated 26.3 million U.S. dollars in subscription services revenue, up by almost two million dollars from the figure recorded at the beginning of 2019.
It may be a silly question, but..
How are Melody going to cover the $44M payment obligations ?
The existing revenue streams of either party will not do it - what do they foresee ?????
Its all very well funding their acquisition this way, but don't forget they are still munching through money at a ferocious rate and will need to fund their running costs
I saw some of the V Festival, the sound was good/ok as you would expect from an event at that level, but the set looked like something built by a local adult education DIY class
Mooney111
At 3:55pm ADVFN shows
221K buys
740K sells
A nothing day
The new Oculus Quest which is to be released later this year will be a lighter, more ergonomic headset, but you will have to have a Facebook account to use it
https://uploadvr.com/community-download-requiring-facebook-account-oculus/?amp&__twitter_impression=true
Probably not a good thing for sales of the new headset
For interest;
https://uploadvr.com/apple-vr-boundary-system/?utm_source=dlvr.it&utm_medium=twitter&&__twitter_impression=true
short clip of John Legend's live VR concert with Melody just shown on BBC news in piece about the effect of corona virus on the music industry
Lordfont - for your information, the definition of "coming soon" in relation to MVR was done two and a half years ago