Napster - NAPS - Share Chat

I searched for the ticker EVRH as in the title of this thread and couldn’t find it. Then searched with MelodyVR name and voila - so ticker is MVR :slight_smile:

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They changed their ticker this year, some time after April. I’ve updated the thread title to match.

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Interesting comp news from last month, Pandora’s margin getting hit hard. Updating the stats and using Enterprise Value instead of Market Cap (also added more of the big players):

Napster: 1.1m subs / $94m = $85m per million subs
Spotify: 144m subs / $59,720m = $415m per million subs
Pandora: 6.4m subs / $2,500m =$390m per million subs
Tencent music: 51.7m subs / $44,110m = $853m per million subs

I think this massive discount is caused by the long-term declines in subscribers. Back in 2019 RealNetworks acquired a controlling 42% stake in Napster for $40m, which valued the entire business at $95m, and that was with double the subscribers there are now. There’s also the separate execution risk of the new strategy. What investors may be overlooking though is that while subscribers may fall, overall revenue is very likely to stabilise if not rise due to increased “per stream” usage. This is not to be underestimated, if I restate a quote from an RNS above:

The initiatives to cross promote artist Tom Grennan, a MelodyVR live streamed event from
O2 Academy Brixton drove a 20 per cent. increase in artist streams

While a combined differentiated music streaming service may not attract new subscribers, VR concerts will give event-driven boosts to revenue. That to me dramatically reduces the importance of execution failure or the risk of no B2B growth.

Unfortunately we will have to wait until the end of June for the next results, between which the stock could continue sliding. This is a long-term hold for me though, what do people think? Will a VR-focused service be a success, do they have competitive threats?

I think it would be much easier for any of the bigger players to move into the VR space then it is for MelodyVR to compete with the bigger players on the streaming side of things. I like the idea but I’m not convinced they can maintain subs or halt the slide

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As if I asked for it, they released some Napster details today. Overall looks good, stock up 5%.

· Amendment to the platform services agreement with SONOS, one of the world’s leading sound experience brands, covering the expansion of ad-supported SONOS Radio in 14 new territories (UK, Ireland, France, Germany, Italy, The Netherlands, Sweden, Switzerland, Austria, Belgium, Denmark, Norway, Australia, New Zealand). The SONOS Radio service, which is one of more than 100 streaming services available on the SONOS platform, is now the 3rd most streamed service on SONOS since its launch in April 2020;

· Renewal of the technology and platform services agreement with Panasonic Corporation (Japan) to March 2022, providing application development and integration of Napster services with Panasonic’s HomeX smart home music services;

· Renewal of the digital media services agreement with Telefonica Germany to December 2022, including a 2-year extension of the Napster music service for O2 subscribers and Aldi Talk service subscribers in Germany.

These contract renewals are expected to secure revenues of c.$16 million in aggregate over the course of the next 2 years.

We are also pleased to report the following engagement metrics for the Napster platform for the year ended 31 December 2020. These metrics demonstrate user engagement with the platform and a basis on which to attract new revenue generating users and B2B contracts.

· 126% increase in total platform users at December 2020, including subscribers from PaaS services, to 5.7 million (December 2019: 2.5 million)

· 15% increase in platform average monthly active users, including subscribers from PaaS services, to 1.2 million (FY19: 1.0 million)

· 10.5 billion total plays (FY19: 10.8 billion) and 306.5 million listening hours (FY19: 328.2 million)

In addition, we are pleased to report further expansion in the catalogue of tracks available on the platform thus strengthening the proposition and the depth of content available to Napster’s user base.

· 25% increase in available tracks on the Napster D2C and B2B platform at the year end to 105 million (FY19: 84 million)

· 30% increase in total unique artists available on the platform at the year end to 4.6 million (FY19: 3.5 million)

Looks like tickers changing again, Napster Group PLC - NAP is available :eyes:

As confirmed in the GM, the TIDM has now changed to NAPS. How can we get this updated on Freetrade ASAP?

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it’s been delayed:

although they’ve updated the napster website with some share information:

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Looks like it’s actually happening tomorrow! Will Freetrade be updated?

The name has now been changed but the category and description has not. IMO it’s no longer a VR entertainment company , it’s now a fully fledged music streaming service.

It’s probably still a vr service under the name of napster. Napster have obviously seen the potential for this company.

I’m going to guess that trading is suspended for this company for a bit? Considering the market has been open for nearly 2 hours now and so far no ups or downs.

It’s not - the Napster and MelodyVR apps are due to be merged later this year with the VR aspect taking a backseat.

Trading is not suspended. It was for a period late last year pending the RTO but has been trading since. Today was simply a name change.

Updated this thread now and the app to reflect the new entity.

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I’ve tried to buy shares all day but my payment keeps getting rejected :unamused:

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Not too sure if many people know this, Napster is partnered with BMW as their music provider for the BMW connected platform.

essentially every 2020 car and every car going forward with the 7.0 OS will be using Napster.

https://connecteddrive.bmwlaunchpad.co.uk/services/bmw-music

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Seems to be working now. Just purchased.

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For future reference, this blog post from Freetrade might shed some light

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not letting me buy!

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How on earth is Napster even allowed to operate? Given its initial purpose was the sharing and distribution of illegal, copyrighted material? I’m clearly out of the loop :sweat_smile:

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Never had so many rejections in my life :woman_facepalming:t6:. Freetrade platform still not allowing me to buy!!