Live music in virtual reality startup and future owner of Napster – MelodyVR report disappointing half-yearly earning results for 2020.
MelodyVR recently published their earnings for the first six months of 2020, generating just £189.9k ($248.2k) of revenues from live streams, selling merch and vinyl.
Royalties and content creation costed the company £1.3m ($1.7m), while administrative expenses were at £9.4m ($12.3m). This amounted to £10.5m ($13.7m) operating loss and £10.7m ($14m) net loss for the first half of 2020.
In September, MelodyVR announced it will be acquiring Napster. In the report, MelodyVR outlined their plans for the streaming service:
Over the course of the coming months we intend to develop a new application which will enable us to drive revenues by providing users with a premium, recurring, monthly subscription service. For a monthly fee, music fans will receive access to Napster’s recorded music library of 80m+ tracks, together with new live audio recordings, long and short form video content and MelodyVR’s library of immersive VR experiences.Anthony Matchett, Executive Chairman & CEO, MelodyVR
Later stating that “completion of the transaction is dependent upon securing additional funds associated to secure the working capital requirements going forward”.