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MelodyVR Shares Rise After Key Contract Renewals

Updated: 22 Jul 2021

Music company and operator of the Napster platform, Melody VR (LON: MVR), said on Tuesday that it has renewed key contracts with Napster's business to business partners and release metrics for the Napster platform for the year ending 31st of December 2020.

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Melody VR shares rose to highs of 3.2p following the news. They are currently trading at 3.01p up 2.12%.

The company revealed an amendment to the platform services agreement with SONOS a sound experience brand, covering the expansion of ad-supported SONOS radio in 14 new Territories.

They also renewed a technology and platform services agreement with Panasonic Corporation to March 2022, providing application development and integration of Napster services with Panasonic’s HomeX smart home services.

And finally, the company renewed a digital media services agreement with Telefonica Germany to December 2022 which includes a two-year extension of the Napster music service for O2 subscribers and Aldi talk service subscribers in Germany.

The renewals are expected to secure C$16 million of revenue of the course next 2 years.

Elsewhere MelodyVR saw a 126% increase in total platform users in December 2020 which includes subscribers from PaaS services to 5.7 million, a 15% increase in platform average monthly active users including subscribers from PaaS services to 1.2 million and 10.5 billion total plays with 306.5 million listening hours.

The company also reported a 25% increase in available tracks on the Napster D2C and B2B platform at the end of the year to 105 million and a 30% increase in total unique artists available on the platform to 4.6 million.

“The continued adoption of music streaming is creating meaningful B2B growth opportunities for Napster's platform-as-a-service business. These latest contract updates follow a very successful 2020 with 130% growth in PaaS revenues from partners like Sonos, Huawei, BMW, Sony, Rakuten and others,” commented MelodyVR CEO, Anthony Matchett.

“Following MelodyVR's successful acquisition of the Napster/Rhapsody business, we will leverage the existing technologies of both Napster and MelodyVR, alongside the best content and functionality from each business, to create a new music platform during the course of 2021,” added Matchett.

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