RE: Long term1 Feb 2021 11:21
Hi Albert
Thanks for the response sorry for my delayed reply in advance notice this is a long ramble :). Badbat look away now
In principle everything you say is sensible, but it only partially addresses the question. As i understand it appears that you're happy to wait until the app roll out but......
1.) does this mean you'd expect no change in share-price between here and then?
2.) Appreciated that Covid has made things substantially more challenging but as Rikkitikki pointed out - there was a lot of positivity from all of us around the momentum being gained from the live nation series and tens of thousands of ticket sales. As you pointed out - 'promoting MVR' would be dead money, however if these concerts are generating revenue then surely this is a positive. There must be plenty of artists out there who are still keen to do these kinds of things
3.) As napster is now owned by MVR, i think that these types of shows could be continued and continue to be distributed via MVR with some minor and relatively inexpensive tweaks to sell the shows as 'in partnership with napster'. This would keep MVR momentum going and start the process of 're-familiarising the public with the napster brand - which is the marketing exercise referred to in the AD - due to start in May. From an advertising and 'link perspective - i personally think this would be beneficial. The old arguements of developing a brand takes time and similar comments will no doubt surface in May. In short - why not start this exercise now? this would surely also mean many more links pointing to both MVR and Napster too, thus starting to build a batter base from for when they kick off the bigger campaign in May? I'm no marketing expert but this makes sense to me.
4.) If its considered as a given or we're happy to wait 6 months for anything material to arrive, i come back to MVR as a 16m cash burn on the combined business. With this going through since august, i very much doubt that the directors do not have a good understanding of what synergies that plan to be making, and would we not expect this to be something which is implemented urgently to limit that 16m cash burn on the wider business? I think this scenario of MVR being dead weight, reflects reality more closely - and this is something that i would expect to see some information on.
Yes they do have a habit of managing to throw some unexpected positives out of left-field, but like the Singtel one - which is under the MVR brand - with close inspection, this means nothing if the MVR brand is dead?
IMHO, those who are defending / supporting the long term view of waiting until the new app is here (which is perfectly acceptable), appear to have no opinion on what should be happening between here and then, but also wont come out and say i'm completely happy to wait (other than Lord Font who has been clear about this). This is whilst simultaneously shooting down any suggestion or opinion that there should be more now
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